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[Spyxos]

Unity is cutting another 600 employees in its third round of layoffs in less than a year, The Wall Street Journal reported today.

The cuts equal about 8% of the company's headcount, and will leave it with roughly 7,000 employees worldwide.

Additionally, Unity is looking to reduce its physical footprint, cutting down its current 58 offices worldwide to fewer than 30 over the coming years.

"It's all about setting ourselves up for higher growth," Unity CEO John Riccitiello told the outlet, saying the cuts will look to reduce the number of middle management layers in the organization.

Unity is also planning to have employees return to in-office work at least three days a week starting in September.

Unity confirmed layoffs of about 200 people last June, although Riccitiello told us months later that most of the impacted employees had stayed with the company in a new capacity.

That was followed in January by the company laying off nearly 300 more.

In February, Unity posted its first profitable quarter (on a non-GAAP basis) dating back to its founding in 2004.

https://www.gamesindustry.biz/unity-lays-off-hundreds-more-closing-half-of-offices

 

[StreetsofBeige]

Well, that's tech in a nutshell.

Shit loads of money to hire, go on giant hiring sprees asap when it's going good, but when things sputter it's gigantic layoffs, cash burn, and the stock drops from $100 to $6 kind of thing.

Got to take the good with the bad. And given the trend from those big tech companies hiring and firing, it seems the net new hires now vs pre-covid is still way higher.

 

[AndrewRyan]

In February, Unity posted its first profitable quarter (on a non-GAAP basis) dating back to its founding in 2004.

Wow.

 

[Cert.in.Death]

Condolences to all. It’s no fun for anyone (I’ve been there personally) but the ship will sink if it doesn’t shed weight.

Kinda figured this would happen after they acquired the cinema animation studio, I forget the name.

 

[Silver Wattle]

Makes sense, 7000 employees is too much for what they do.

 

[poppabk]

Well, that's tech in a nutshell.

Shit loads of money to hire, go on giant hiring sprees asap when it's going good, but when things sputter it's gigantic layoffs, cash burn, and the stock drops from $100 to $6 kind of thing.

Got to take the good with the bad. And given the trend from those big tech companies hiring and firing, it seems the net new hires now vs pre-covid is still way higher.

Firing people usually results in the stock price increasing.

 

[adamsapple]

Oof that's rough. Hopefully all effected land on their feet.

 

[LordOfChaos]

Glad I cut and gave up on this stock wise. Seemed like it had massive potential in mobile games, and maybe it will one day, but it bleeds money out the anus and is distracted by silly buyouts.

 

[brian0057]

Ubisoft won't see 2024.
Maybe 2025 if we're generous.

EDIT: Wrong videogame compnay that's also laying off people. Don't mind me.

 

[LordOfChaos]

Ubisoft won't see 2024.
Maybe 2025 if we're generous.

How is Ubisoft related?

 

[Fahdis]

How is Ubisoft related?

Think most people confuse the Anvil Engine with AC Unity for some reason.

 

[onQ123]

Unreal Engine is pretty much eating their lunch hell even the devs who used to use in-house engines are going with Unreal now & Indies don't seem as popular as they once were.

 

[aries_71]

They really did have that many employees? 7000? amazing.

 

[brian0057]

Think most people confuse the Anvil Engine with AC Unity for some reason.

I read Ubisoft instead of Unity.
Don't comment while sleep deprived, folks.

 

[SlimeGooGoo]

What keeps Unity alive are 3D mobile (chinese) games and high-resolution 2D games.

As a side note, Capcom used Unity to prototype Resident Evil 7, and RE Engine shares some similarities with it.

 

[theclaw135]

Unity has essentially achieved its aim. There isn't much need to further develop the engine.

 

[rofif]

How many people does an engine company hires. Wtf is going on. I would’ve guessed the company hires 7 people but they still hire 7000 people. Wtf

 

[StreetsofBeige]

Firing people usually results in the stock price increasing.

Usually true, but before the firings there's a period of crashing financials and stock price.

Not too often a company is firing on all cylinders at peak stock price and performance and they gas lots of people anyway.

 

[AJUMP23]

At least these people should already know how to code.

 

[SJRB]

They still have 7,000 employees? Jesus Christ, what are they all doing?

 

[StreetsofBeige]

They still have 7,000 employees? Jesus Christ, what are they all doing?

Probably the typical overbloated tech company. Must be IPO money or investment funds putting in billions because Unity has been losing shitloads of money for years.

That is the one lucky thing about working at a big tech company. No matter how bad the company does, there always seems to be tons of money to go around for salaries until that 13th hour where it all comes crumbling to an end fast.

The dotcom bust era in 2000 was the best example of this. You had internet and tech companies with zero viable business plan, but scraped up billions in money on hype and somehow would blow it all in 3 years spending like a lottery winner asap.

Unity Software Inc. (U) Income Statement - Yahoo Finance

Get the detailed quarterly/annual income statement for Unity Software Inc. (U). Find out the revenue, expenses and profit or loss over the last fiscal year.

finance.yahoo.com