While last year was a great year for video games with a number of high-quality titles seemingly releasing every month, it was also one of the worst years for the industry with a very high number of layoffs occurring throughout the year. One of the companies that had it rougher than most was Unity, one of the largest game engine developers in the industry. They tried to change and impose a new “runtime fee” which led to major backlash from the video game industry and community, so much so that the then Unity CEO and President John Riccitiello retired from the company. The policy was changed shortly after the uproar. Afterward, in November, Unity announced that it was laying off 265 employees with the closure of Weta Digital. This was the first part of a company reset. Now, Unity has announced the second part, laying off around 1,800 employees, cutting 25% of its workforce.
On January 8, 2024, Unity Software Inc. announced that it plans to reduce approximately 1,800 employee roles, or approximately 25% of its current workforce, as it restructures and refocuses on its core business, and to position itself for long-term and profitable growth,” Unity said in a regulatory filing and internal memo.
“Today, as part of our company reset outlined in our Shareholder Letter on November 9, 2023, we announced that Unity has made the difficult decision to implement a workforce reduction, targeting approximately 25% of our total workforce across all teams,” Kelly Ekins, Unity’s director of PR, says in a statement to The Verge. “This decision was not taken lightly, and we extend our deepest gratitude to those affected for their dedication and contributions.”
This marks the company’s largest layoff ever, with completion expected by the end of March. A company spokesperson confirmed additional changes are coming.