Game-Time report/Although the cost reduction and efficiency increase in the technology industry are not over yet, this is a fact that everyone knows, but the first cut in 2024 also comes as a surprise.
Unity, which has laid off more than 1,100 employees multiple times around 2023, announced in a document submitted to the SEC today that a larger employee reduction plan is in progress. The planned layoff ratio is approximately the company’s total number of employees. 25% of the total, which is approximately equal to 1,800 people.
This latest layoff is also part of the “company reset” mentioned by Unity in previous announcements and shareholder letters. It was initiated by interim CEO Jim Whitehurst, who took office at the end of last year. The company’s previous CEO John Riccitiello was due to Unity’s controversial previous The new charging plan will start after leaving the company at the end of October.
According to SEC documents, Jim Whitehurst’s reset strategy aims to redirect the company’s team’s business focus to Unity’s core business, with the intention of forming a more streamlined and efficient product portfolio.
As part of this strategy, Unity has also previously downsized the Weta Digital special effects studio team it acquired, and decided to successively close 14 office locations around the world and reduce the office area of other branches.
Unity’s stock price rose slightly after the layoff announcement, which may be interpreted as investor confidence in the company’s reset plan. But now Unity’s stock price has fallen by nearly 80% compared with the high it reached in 2021.
However, although the impact of these layoffs on Unity’s financial performance in the new quarter and future is still unclear.
But from an industry perspective, on the one hand, Unity’s outflow of a large number of talents means that for game companies, there are many more technical talents with lower costs and understanding of engines on the market. For some game and technology companies, Maybe that’s a good thing.
Of course, on the other hand, large companies at home and abroad have laid off employees on a large scale, resulting in instability of platforms and products. In the past year, Unity laid off a quarter of its people at one time. In the short term, the company’s product functionality updates and maintenance It may not be as good as before.
Unity hopes to become stronger and more focused by returning to its core competencies and streamlining operations. However, the road ahead is uncertain, and the true impact of these layoffs on the company’s trajectory will become apparent in the coming months.