Unity is currently amid another round of layoffs, with an expected impact on approximately 25 percent of its workforce, translating to around 1,800 employees.
Impacting 25% Employees
Known for its widely used game engine Unity, the company disclosed this downsizing in a recent Securities and Exchange Commission filing.
The decision to implement these cuts is part of a broader strategy involving a restructuring process aimed at refocusing on its core business, positioning Unity for sustained profitability, and fostering long-term growth.
The Verge reported that this latest workforce reduction follows several similar instances over the past year, including the most recent in November, affecting 265 employees.
The extent of the current reduction remains uncertain, and it is unclear whether the 1,800 job cuts are in addition to those announced last year. Unity has been contacted for further clarification on this matter.
Kelly Ekins, Unity's Director of PR, announced a significant workforce reduction as part of the company's broader reset plan detailed in the Shareholder Letter on November 9, 2023. The decision was a challenging but necessary step.
Affecting roughly 25% of Unity's entire workforce spanning all teams, Ekins expressed gratitude for their dedication and contributions, emphasizing the gravity of the decision and the thoughtful consideration that went into it.
It's important to note that last year's layoffs coincided with adjustments to Unity's pricing model, causing dissatisfaction among developers. Responding to the backlash, Unity revisited and revised certain aspects of the new policy.
Interestingly, these changes occurred around the same time as the resignation of the former CEO John Riccitiello.
One of the casualties of the recent wave of layoffs within the gaming industry is Unity, a platform widely employed in popular games such as Fall Guys and Pokémon Go.
Workforce Reductions in the Gaming Sector
This downturn, however, is not unique to Unity, as other major players in the gaming sector have also implemented workforce reductions. The cumulative impact of these job cuts has affected over 9,000 individuals in the gaming industry throughout 2023.
Epic Games experienced a substantial downsizing in September, laying off 830 employees. Tim Sweeney, the CEO, acknowledged financial difficulties and expressed initial optimism about avoiding layoffs during a transitional period.
Over the past two years, Embracer Group gained attention for its extensive acquisitions in gaming studios, media companies, and The Lord of the Rings IP rights. However, a sudden shift occurred this year as the company initiated a massive restructuring
The aftermath saw Embracer closing three studios, exploring sales of others, canceling numerous projects, and laying off over 900 employees.
These instances offer just a glimpse into broader industry trends. Hasbro executed layoffs affecting 1,000 employees, notably impacting the team behind Baldur's Gate 3 with Larian Studios.
Remarkably, amidst these significant workforce challenges, one of the industry's major events failed to acknowledge the stark reality of these developments, leaving the lasting consequences yet to be fully understood.
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