Unity Announces Layoffs In Its Financial Results While Year-Over-Year Revenue Increases To $544 Million

Layoff news won’t stop as game development engine company Unity, during its quarterly financial results (ending on September 30th, 2023), announced the company will face layoffs as a cost-cutting measure as a result of a “comprehensive assessment of its product portfolio,” which will go into effect starting in the fourth quarter in Q1 2024, according to GameIndustry.biz.

“The assessment will likely lead us to decide to discontinue certain offerings, reduce our workforce and reduce our office footprint… to focus on those products that are most valuable to our customers. The timing and the full impact of these types of changes on our future results of operations, cash flows, or financial condition are uncertain, and for those reasons, we are currently unable to reasonably quantify the potential impacts through the fourth quarter of 2023,” the company said in a statement.

The upcoming reduction in its workforce comes after the company revealed in that same financial result that its revenue increased to $544 million, a 69 percent increase year-over-year. That said, the company is still reporting a net loss of $125 million this time, but compared to last year’s $250 million net loss, that is a 50 percent drop. It hasn’t been a great year; more specifically, in the last couple of months, developers came together after announcing a new price model for Unity to boycott the move.

The company would later backtrack its initial announcement with improved policies that developers, for the most part, were more agreeable to than the original price model. The whole game industry backlash against Unity would later lead to the retirement of former Unity’s CEO and president, John Riccitiello, after nine years with  James M. Whitehurst serving as Interim CEO until the company’s board of directors found Unity’s next CEO.