Summary
- Unity plans to lay off approximately 25% of its staff, following a difficult year due to controversies and a CEO change.
- 2023 was a tough year for game developers, with other companies also announcing layoff plans.
- Uncertainty remains about the impact of these layoffs on Unity and the gaming industry in 2024.
Unity is planning on laying off as much as 25% of its staff, according to a filing with the Securities and Exchange Commission (SEC). The past year has been tricky for the company following its controversial pricing model update that prompted outrage from developers and pushed Unity CEO to step down. With the latest layoff announcement, Unity's turbulent situation only appears to be getting more challenging.
2023 proved to be a harsh year for game developers with companies letting go of as many as over 9,000 within the period. Numerous studios made similar layoff announcements throughout the year, ranging from Microsoft's 343 Industries to Embracer laying off over 900 staff. Even companies with relatively recent success like EA and CD Projekt Red were impacted by layoffs. Now it appears Unity may be continuing the trend in 2024 as well.
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As per a recent SEC filing and an internal company memo, Unity plans to lay off about 1,800 of its staff, or approximately 25% of its workforce. The company claims the cuts are a part of its restructuring and refocusing efforts on its core business and to position Unity for "long-term and profitable growth." However, it's unclear if the announced layoffs are separate or on top of the already announced staff cuts from last year.
Back in November, Unity announced layoffs in its Q3 report, the second time in the year and the fourth time in 17 months. At the time, the company noted that its CEO change prompted a "comprehensive assessment" of its products and services with regard to utilizing its existing resources. Part of this process meant that more staff cuts were on the cards, although the company's latest announcement marks the biggest layoff for Unity in a two-year period.
It doesn't help that even some of the most successful studios like Insomniac Games have been pressured to lay off staff, along with several acquisitions and mergers in recent years like within the Embracer Group turning out to be unfruitful. In any case, it remains to be seen how far the cutbacks will impact Unity in the coming few months. Although Unity's announcement raises concerns for the gaming industry in 2024, it's unclear if the year will follow a similar trajectory in terms of layoffs.