Unity Is Cutting 25 Percent Of Staff In ‘Company Reset’

New Year, same old story.

Unity Software is letting go of 25 percent of its workforce just days into the new year. Today, the San Francisco-based company announced via an internal email that it is cutting 1,800 jobs.

Unity Has Cut 25 Percent Of Its Staff

“We are … reducing the number of things we are doing in order to focus on our core business and drive our long-term success and profitability,” interim CEO Jim Whitehurst reportedly announced in a memo.

Unity was criticized last year after former CEO John Riccitiello revealed the company would introduce a new run time fee that would charge developers a fee for each game install after a certain revenue threshold and installs were met. Developers then revolted en masse and began to move their projects away from Unity.

This led to Unity going back on their decision and adjusting their messaging, but the damage was done, and many developers had dug their heels in. Unity shares plummeted, and Riccitiello was ousted.

Interim CEO Jim Whitehurst revealed in November there would be a company reset coming. In November, 265 employees were let go — the team from Wētā Digital, a division of Unity, which was acquired in 2021 for $1.63 billion.

Whitehurst says Unity was “currently doing too much, we are not achieving the synergies that exist across our portfolio, and we are not executing to our full potential” and that the company plans on being “faster and more agile.”

Last year was one of the worst years for layoffs in the video game industry, with more than 9,000 jobs being cut across companies, including Embracer, EA, ByteDance, and more.