Unity Technologies, the famous game engine and development platform, has reportedly announced a more than "likely" reduction of its workforce. The decision was reported amidst the development platform's evaluation of its product portfolio, which will focus on those "most valuable" to their customer or what Unity calls a "customer-first business model."
The announcement was made on the company's Q3 earnings report document, per The Verge. This move, described in the report as "interventions," is expected to be complete by the first quarter of 2024.
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Unity stated that the exact timing and date of the layoffs and other "interventions" were yet to be determined, as it is "difficult to estimate." Aside from expected layoffs, Unity aims to discontinue specific product offerings and reduce the company's office footprint.
This move follows after the same report stated that Unity Q3 profits are "mixed" and the company's total revenue amounted to $544 million, over a "69% year-over-year increase."
Unity Technologies also put into detail the company's future actions to strengthen performance and drive revenue, focusing more on tighter integration for its "create solutions and grow solutions" organizations as well as Unity's "Editor, Runtime, and Monetization Solutions," wherein the game engine firm sees it is necessary to become a "leaner, more agile, faster growing company."
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Game Development Firm's Recent Layoffs
This announcement follows a recent trend of game development companies, along with other Big Tech companies, conducting wide layoffs for their tenured and new employees.
Engadget also reports that Ubisoft Montreal had staff reductions in November. Ninety-eight workers at Ubisoft, which is said to have the largest in-house development team within the company, were laid off from its Montreal headquarters.
The same report states that approximately 830 individuals, or 16 percent of the workforce, were let go by Epic Games. CEO Tim Sweeney wrote an open letter to staff members stating that the firm was spending "way more money" in debt than it was making and that "we concluded that layoffs are the only way." Until now, the company has tried to save expenses by hiring fewer people and spending less on advertising.
Even the developer of Cyberpunk 2077 conducted layoffs in July. CD Projekt Red reportedly issued a warning, estimating it will lay off around 100 employees over the following several months, or roughly 9% of the total staff. Workers may be let go as late as 2024's first quarter. The CEO, Adam Kiciński, was upfront about the rationale behind the reorganization: CDPR was "overstaffed" for a game developer's expanding product plan that included additional Witcher and Cyberpunk releases.
Reason for the Recent Tech Layoffs
Forbes reported back in January that the reason for the recent layoffs across Big Tech companies, in general, is unlikely to be because the businesses in question need funding. Still, instead, because of the recruiting frenzy during the COVID-19 outbreak, these layoffs signify a reversal of the employment practices implemented during the outbreak.
Another reason noted by Forbes was the increased utilization of AI or automation within these businesses as a contributing factor. Some job tasks now have platforms that aim to "automate routine tasks."
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