Unity is laying off hundreds of employees as shares continue to slide

Shawn Knight

Posts: 14,247   +159
Staff member
What just happened? Unity, the San Francisco-based developer behind the game engine of the same name, is parting ways with hundreds of employees as part of planned cost-cutting measures. Unity confirmed the layoffs in a statement to Protocol, noting the decision would impact approximately four percent of its workforce. That equates to just over 200 employees based on numbers from last year's SEC 10-K form.

The company said it decided to realign some of its resources to better drive focus and support their long-term growth. "We are grateful for the contributions of those leaving Unity and we are supporting them through this difficult transition," a spokesperson told the publication.

The software specialist was founded in 2004 and went public in late 2020. Last year was a bit of a roller coaster ride but 2022 has mostly been a downward-sliding slope. Year to date, Unity's share value has dropped more than 72 percent.

Sources familiar with the matter told Kotaku that Unity held an all-hands meeting roughly two weeks ago in which CEO John Riccitiello assured employees that the company was not in financial trouble and that nobody would be laid off.

Kotaku said Unity will pay employees that have been laid off for an extra month and is offering additional severance and health insurance coverage afterwards.

As Protocol highlights, Unity's primary competitor is Epic Games. Unlike Epic, Unity doesn't develop any of its own games and instead relies solely on licensing fees from its engine for revenue. As of writing, Unity has a market cap around $11.14 billion.

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DZillaXx

Posts: 533   +681
Lets be honest, let a lot of tech companies that lay off 100s of employees at a time. There people probably didn't do anything too important in the day to day. Some of these entry level Dev Jobs are about as bad and repetitive as they come.

 

YouShallNotPass

Posts: 42   +89
Lets be honest, let a lot of tech companies that lay off 100s of employees at a time. There people probably didn't do anything too important in the day to day. Some of these entry level Dev Jobs are about as bad and repetitive as they come.

That's not what I have heard.

 

passwordistaco

Posts: 279   +658
If >200 employees is 4%, then the total was over 5,000. That's a lot of people to develop and maintain a game engine.

With an $11+bn market cap (AFTER a drop of 72%) and that many employees, how are they not running a studio to show off what their engine can do?

Edit: Just saw their CEO came from EA. Mismanagement explained.
 
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Shaitan

Posts: 181   +203
That's how you build trust. Tell your employees no lay offs will take place then lay off some. Nice.
Exactly why I'm not ever trusting EA, Blizzard and so on ever again. When it comes to trust, one eff up should be more than enough. After the Battlefield V, Diablo II no-LAN and censorship, WC3: Reforged and the catastrophe which is Diablo: Immortal, anything which has MTX is a no-go.
Also, NEVER, EVER, EVER pre-order. Wait for at least a month or more before buying a game.