A new report says Unity is cutting around 1,800 jobs, or about 25 per cent of its employees, according to a regulatory filing and internal company memo obtained by Reuters.
This is reportedly the largest round of layoffs in the software company’s history—far larger than what happened in November of last year—and it will be completed by the end of March. Unity has gone through three prior rounds of layoffs within the last 12 months.
“We are … reducing the number of things we are doing in order to focus on our core business and drive our long-term success and profitability,” interim CEO Jim Whitehurst wrote in an internal memo obtained by Reuters. The memo was sent to all Unity employees on January 8.
Kotaku has contacted Unity Software for comment.
Unity Software’s main product is the Unity engine, a flexible and popular game engine that powers numerous big and small games—including Hearthstone and Pokemon GO. The company was at the center of a massive controversy last September when it announced changes to how it would charge developers and publishers to use its tech. Devs would potentially be on the hook to pay for every install, which could be costly for free-to-play mobile hits or popular games on platforms like Steam. Following the failed rollout of these changes, a huge backlash from developers quickly followed. It grew so loud that eventually the company apologized and walked back most of its new plans.
In October, shortly after this all happened, Unity’s then-CEO John Ricetello resigned. That’s when the current interim CEO, Whitehurst, took over the company. In November, during the last round of layoffs, the new CEO claimed the company needed a “reset.”
These latest layoffs continue a horrible trend in the video game industry that saw an estimated 6,000 jobs lost during 2023. And it seems things aren’t going to get better in 2024.
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