Unity Technologies, a software development company, is bracing for potential layoffs in the wake of its third-quarter earnings report released on November 9. The company expressed its intention to refocus on its most valuable products, signaling forthcoming changes such as discontinuing certain offerings, reducing the workforce, and trimming its office footprint.
Also Read: Unity’s President Steps Down Amid Pricing Controversy in the Developer Community
These adjustments are expected to be implemented in the first quarter of the 2024 fiscal year, indicating imminent changes in the coming months. The Verge was the first to report on this development, highlighting the likelihood of layoffs within the company.
Unity Technologies has faced challenges in recent months, with its pricing model announcement on September 14 generating significant backlash. The proposed changes would result in developers losing 20 cents per install to Unity once a game exceeded $200,000 in revenue. This had potential financial implications for developers offering games through platforms like Game Pass and PlayStation Plus, where games are typically available for free download.
The community response was robust, with over 500 developers uniting to sign a petition urging Unity to reconsider its decision. The discontent prompted Unity to reevaluate its pricing model in the days following the announcement.
In their third-quarter reports, Unity acknowledged the challenges, stating, “The execution created friction with our customers and near-term headwinds.” Despite the acknowledgment of negative impacts, the company maintained that the pricing changes were crucial for establishing a sustainable business.
Following the backlash, Unity took remedial steps, including issuing an apology on September 22. Additionally, the company experienced a significant leadership change, with its president retiring and departing the company less than a month after the pricing model incident.
As the company prepares for potential layoffs and restructuring, the public response remains uncertain. Unity Technologies will initiate these changes in the first quarter of 2024, and the impact on both the company and the industry will become clearer as these adjustments unfold.
