Unity Implements Third Round of Layoffs in 18 Months

Unity Technologies, the renowned game engine developer, has initiated another round of staff reductions, although the exact number of affected employees remains undisclosed. This information comes from internal sources who received notices about their impending contract terminations.

The Behavior department, responsible for developing non-player character tools, bore the brunt of the layoffs. However, other divisions within the company also experienced personnel cuts. This move is part of Unity’s strategy to streamline expenses following a failed attempt to introduce a new monetization model. In late 2023, the company proposed charging developers for each game download, but the idea was abandoned after facing severe backlash from the developer community. This controversy led to the resignation of CEO John Riccitiello, who had initially proposed the concept.

This latest wave of layoffs marks the third such event for Unity in the past year and a half. In late 2023, the company let go of 265 employees, followed by another 1,800 staff members just a few months later, which at the time represented 25% of their total workforce. These ongoing reductions highlight the challenges Unity faces in maintaining its market position and financial stability in the competitive game development industry.