Unity reduces its workforce by 25%

The company plans to cut 1,800 jobs, which will mark the largest layoff in Unity's history.
The decision to reduce staff, approximately 25% of the company's workforce, was announced via a memo on January 8, 2024. Reuters confirmed this information, citing a relevant document.

The mass layoff, scheduled for the end of March 2024, will impact all departments and regions where Unity operates. This information was confirmed by the company in response to Reuters' inquiry.

This move was expected following Unity's announcement of a "reboot" in its business in November 2023. The company plans to close offices in 14 cities and significantly reduce staff as part of this process, but the extent of the layoffs was not anticipated.

James M. Whitehurst, the interim CEO of Unity, stated that these layoffs would help the company focus on core tasks and ensure long-term success, indirectly implying significant challenges within the company. However, he did not provide employees with detailed information about the upcoming changes in the company's structure.

In September 2023, Unity announced a sharp change in its business model, involving charging developers based on the number of game installations after a certain threshold. Developers strongly criticized Unity's actions and called for a boycott of their game engine.
In response to the criticism, the company apologized to the developers and reconsidered the controversial business model, making significant changes to the initially proposed monetization scheme. Among other concessions, Unity offered additional bonuses to customers on the Personal pricing plan.
It's worth noting that in October 2023, Unity's CEO, John Riccitiello, stepped down from his position, which he held since 2014.