- Unity lays off 1,800 more employees, 25% of staff.
- Cuts continued the company’s restructuring after the difficult 2022 and controversial policy changes alienated developers.
- Unity faces rebuilding trust and demonstrating financial sustainability after the stock plunged 80% from its peak.
Unity Technologies, creator of the widely-used Unity video game engine, announced plans to lay off another 1,800 employees representing 25% of its staff this week.
The cuts come weeks after Unity’s last workforce reduction as the company restructures to prioritize profitability.
Impact on Unity’s operations
Several hit titles like Cuphead, Ori and the Blind Forest, and Hearthstone adopted Unity’s toolkit for building and operating games across platforms.
But after a difficult 2022, Unity is hitting “reset” – letting go of nearly 30% of employees in under two months to reorient operations.
Unity’s strategic shift and market response
Unity said the rightsizing aims to position itself for “long-term and profitable growth” by refocusing on its core engine business. The move follows previous rounds of layoffs last year plus controversial pricing policy changes that alienated sections of Unity’s developer community.
The internal turmoil already prompted the resignation of CEO John Riccitiello, with former Red Hat president James Whitehurst currently serving as interim chief. Despite optimism around Unity’s refocusing efforts, its stock barely budged this week, hovering around $39 per share – a fraction of its $201 peak.
Unity faces rebuilding trust in its engine platform while demonstrating it can translate widespread adoption into financial sustainability.
The coming months will test whether Unity’s returned emphasis on its fundamental strengths can stabilize its fortunes after huge setbacks.
