In a significant move, Unity Software, a leading provider of videogame software, has revealed its plan to cut about 25% of its workforce, amounting to approximately 1,800 jobs. This decision comes as part of what the company calls a "company reset," following an earlier announcement by interim CEO Jim Whitehurst in November.
 |
| (Image: Google) |
While Unity Software might not be a household name for many, it plays a crucial role in the gaming industry, with over 1.1 million game creators relying on its software toolkit each month. Games like "Pokemon Go," "Beat Saber," and "Hearthstone" are among those developed using Unity's tools.
The layoffs, expected to be completed by the end of March, mark the largest workforce reduction in the San Francisco-based company's history. Despite its impact on various teams, regions, and aspects of the business, Unity's shares experienced a nearly 5% increase in after-hours trading following the announcement.
Interim CEO Jim Whitehurst explained the move as a necessary step to refocus on the core business and ensure long-term success and profitability. This comes as the fourth round of layoffs for Unity since July 2022, indicating a challenging period for the company.
The decision follows a series of events, including attempts to introduce a new pricing policy, a subsequent backlash from game developers, and a change in leadership. Unity's attempt to implement a "runtime fee" pricing policy last September faced resistance, leading to a reevaluation of the fees and a drop in share prices. The company's founder, John Riccitiello, retired, and Whitehurst took on the role of interim CEO.
As part of the recent company reset, Unity terminated an agreement with a visual effects company, closed offices, and shifted away from mandatory in-office work. The current layoffs constitute the second phase of this reset.
Unity, founded almost two decades ago, gained popularity for its "game engine," simplifying game development and publication across various platforms. Beyond gaming, Unity's technology is used in industries like film and automotive for 3D visualization and virtual reality.
Despite facing challenges and fluctuations in its stock value, Unity Software remains a key player in empowering creators across multiple industries. As the company navigates this period of change, the ultimate goal is to refocus its efforts, ensuring a stronger and more sustainable future.
