Unity has planned to drastically reduce its workforce, aiming to cut down 8% of its workforce. This is the third round of layoffs announced by the video game software developer, with the first round responsible for laying off 284 employees in the beginning of 2023.
The second round of Unity layoffs, conducted in June, caused 225 employees to lose their jobs. This move is aligned with the company’s goal of reducing its workforce as it is planning to shut down several offices around the world. At the moment, Unity has 58 offices across the globe, with its headquarters in San Francisco, and it plans on getting this number below 30.
Game engine company Unity to #layoff 600 employees, may shut some offices too
The report has revealed that Unity is set to cut about 600 jobs. These jobs constitute 8% of the organisation’s workforce around the world.https://t.co/8IJ7AKwaY5
— The Times Of India (@timesofindia) May 3, 2023
Falling stock prices in spite of profitable year may have triggered Unity’s layoffs
This news made light of the day after Unity filed a notice with US Securities and Exchange Commission. The statement briefs that the move has been made by the company to “position itself for long-term and profitable growth”, and that these layoffs will affect only certain teams within the company.
The company currently employs over 7000 employees. The fresh layoffs can be attributed to decrease in the stock prices of Unity, which is trading around $25 as of this week. Unity went public in 2020, with the initial evaluation of $13.7 Bn and IPO stock offerings at $52. While the price of their stock had risen to $200 in 2021, the falling prices, despite the increasing revenue, seems to have caused leadership to make these decisions.
During the layoffs by Unity in the beginning of 2023, John Riccitiello, CEO of the company, addressed the employees, stating,
We (have )reassessed our objectives, strategies, goals and priorities in light of the current economic conditions. While we remain focused on the same vision, we decided that we need to be more selective in our investments to come out stronger as a company.
He also stated that certain middle-level management positions would be affected by upcoming layoffs. He added that the company wants more and more people to come to office and would want to create a strong hybrid model for functioning.