Unity does not raise its head and is preparing dismissals

As if 2023 wasn’t problematic enough for Unity, the outlook for 2024 appears equally challenging. In its latest financial report, the company told shareholders that it plans to implement several “interventions” at the operational level, which will include dismissal of some staff.

At this time, Unity has not indicated the number of employees it could do without, nor has it specified which area may be most affected by staff reductions. However, the point is clear: deep changes are coming in the short term to reduce operating costs.

“Several weeks ago, we began a comprehensive assessment of our product portfolio to focus on those that provide the most value to our customers. We also evaluate the appropriate cost structure that aligns with the most targeted portfolio.[…] This will likely include ceasing to offer some products, reduction of our workforce and reducing our office space,” the company said.

Aside from possible layoffs and some office closures, Unity isn’t disclosing details about what products it might stop offering. There is no direct mention of the unsuccessful implementation of the new pricing policy, but it is logical to assume that the new strategy be a direct consequence of this. Or at least it is used as an excuse to justify new solutions.

Unity will cut staff to cut costs.

According to Unity, the changes will begin rolling out starting this quarter, with a goal of completion by the end of the first quarter of 2024. So, if layoffs do continue, They will definitely be announced in a few weeks.

It remains to be seen whether this rapid restructuring will be enough to bring Unity back to peace after a tumultuous 2023. The company is paying the consequences of a headless strategy. Let’s remember that in mid-September the people, then led by John Ricciello, announced that They would start charging developers a fee every time someone installed a game developed on their graphics engine..

The measure was rejected immediately. Several independent studios boycotted Unity and announced a transition to a different graphics engine. Meanwhile, more extreme events have occurred, such as the company’s offices being closed due to death threats.

This incident forced Unity to rethink its initiative, apologize and change its new pricing policy. However, the damage had already been done. So it’s no surprise that just a few weeks later, Riccitiello stepped down as the firm’s CEO. It is curious that his departure was disguised as resignation, although it did not convince public opinion.

Since then, James M. Whitehurst Acts as interim CEO. “We are committed to creating value for our customers and shareholders. Our success is tied to the success of the creators who use Unity,” said the aforementioned in his letter to shareholders. Let’s see how possible layoffs will affect his leadership.