Unity has undergone a new round of layoffs and plans to reduce the number of global offices
Unity, a renowned 3D engine development company, is widely recognized for its Unity engine utilized in game development and 3D creative fields. According to a report by PCGamer, a total of 600 employees were let go in the recent third round of layoffs, while Unity simultaneously plans to reduce the number of global offices from 58 to 30.
As per Unity’s statement, these layoffs aim to streamline management personnel, enhance operational efficiency, and ultimately bolster the company’s profitability. The prior two rounds of layoffs occurred in January and June of last year, with over 500 individuals being dismissed. The 600 employees released in this round constitute 8% of Unity’s total workforce.
The underlying cause for these layoffs is closely tied to Unity’s financial performance. Although the company’s earnings in the fourth quarter of 2022 amounted to $451 million, a 43% increase compared to the same period in 2021, and annual earnings in 2022 reached $1.39 billion, a 25% growth compared to 2021, Unity’s growth rate has indeed decelerated. As a publicly-traded company, investors naturally desire greater value from their shares.
Over the past several months, companies of all sizes, including Microsoft, Google, and Meta, have undertaken layoffs, and some gaming companies have also downsized due to financial concerns, as well as canceling several in-development game projects. Evidently, Unity could not evade such circumstances.