Jan 09, 2024 10:28:00

Unity, which aims to 'reset the company', will carry out the largest layoff of 25% of employees in the company's history

Documents submitted by Unity to the US Securities and Exchange Commission revealed that the company plans to lay off approximately 1,800 people by March 2024. This represents 25% of Unity's total workforce, making it the largest layoff in the company's history.

CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001810806/000181080624000006/unity-20240108.htm

Exclusive: Unity Software to cut 25% of staff in 'company reset' continuation | Reuters

https://www.reuters.com/technology/unity-software-cutting-25-staff-company-reset-continuation-2024-01-08/

In September 2023, Unity faced a huge backlash from the game industry over changes in usage prices due to the introduction of the 'Unity Runtime Fee,' and CEO John Riccitiello resigned.

Unity, which is in turmoil due to price revision issues, announces the resignation of CEO John Riccitiello - GIGAZINE

Although the financial results for the third quarter of 2023 were strong with an increase of 69% compared to the same period last year, the results were lower than analysts' expectations, necessitating measures to boost the results, and former IBM president and new CEO James M. White Mr. Hearst fired 265 people, 3.8% of all employees, in November 2023 to 'reset the company.'

Unity lays off 3.8% of all employees due to ``company reset'' and also ends contract with video production company Weta Digital - GIGAZINE

What has been newly revealed is that 1,800 people will be redundant, which is larger than the one in November 2023, which is equivalent to 25% of Unity employees.

According to Reuters, which obtained an internal memo, CEO Whitehurst told all employees, ``We will reduce the number of jobs to focus on our core business and improve long-term success and profitability.''

A Unity spokesperson confirmed to Reuters that the company's structural changes are true.

After its IPO in 2020, Unity's stock price peaked at about $200 (about 28,700 yen) in November 2021, and then slumped to below $30 (about 4,300 yen) in 2023. . After that, the stock price rose nearly 40% after Mr. Whitehurst announced his plan to 'reset the company.' With the announcement of new layoffs, it is said to have increased by another 5%.