Game engine company Unity is reportedly cutting 600 jobs in a new round of layoffs, the third in a year, accounting for 8% of its workforce. The number of offices worldwide will also be reduced from 58 to fewer than 30 in the coming years as part of the restructuring.
Unity’s Popularity
Unity proclaims on its website that more than 50% of all games are made with the namesake engine as of 2021. This achievement is especially notable as the company only went public in 2020.
Notable titles utilizing the Unity engine include Among Us and Apex Legends.
Layoffs for Higher Growth
“It was clear we had too many layers,” Unity CEO John Riccitiello told the Wall Street Journal. “The layoffs are needed for higher growth.” He added that middle managers were among those affected.
Last year, Riccitiello apologized after saying developers who didn’t consider monetization during the creative process for game development were “f***ing idiots.” This came after Unity laid off 200 employees. The company fired another 300 in January.
Revenue and Hybrid Work
Despite the layoffs, Unity had record revenue of $1.39 billion in 2022, which included its first profitable quarter. In September, Unity plans to adopt a hybrid work model with employees showing up at an office at least three days a week.
Future
Unity currently finds itself at a crossroads, with an ever-growing market share and a push for increasing profitability at the cost of jobs. Its choice to merge smaller satellite offices and centralize operations may be a logical decision for CEO Riccitiello and investors, but it may lead to a loss of talent and innovation, hampering the company’s technological growth in the long run.
What the future holds for Unity is unclear. With its technology powering more games than ever before, it is hard to imagine a world without Unity’s ubiquitous influence. The company’s power seems secure, but its employees’ and the industry’s future is much less so.
