Game engine giant Unity is undergoing a significant transformation, shaking up its workforce and leaving almost 2,000 employees jobless. This overhaul, described as a ‘company reset,’ was disclosed through a regulatory filing and an internal memo obtained by Reuters on Monday, 8th January. 

The decision to reduce its staff by 25% comes on the heels of a tumultuous period for Unity, marked by a failed pricing model change in September that triggered substantial backlash. The proposed pricing shift aimed to charge developers each time a user installed their game, a departure from the current annual fee structure. However, the contentious plan was swiftly abandoned after widespread criticism, prompting some developers to distance themselves from Unity altogether. 

The ramifications of this decision are far-reaching, with the layoffs expected to be finalized by April. This move, the fourth round of firings since 2022, represents the largest workforce reduction in Unity's history, impacting teams and regions throughout the company. While layoffs have become more commonplace in the gaming industry, Unity's announcement adds a significant chapter to the industry's narrative, joining the ranks of companies restructuring in response to market dynamics. 

Unity CEO Jim Whitehurst, as quoted in the internal memo, stated that the company's focus would shift towards the core business to "drive long-term success and profitability." Despite this strategic pivot, specific details about the structural changes remain undisclosed. However, a spokesperson from Unity confirmed to Reuters that additional transformations are on the horizon. 

Also read: Steam Begins 2024 by Shattering Its Concurrent User Record 

The news of impending layoffs at Unity contributes to the broader trend of job losses in the video game industry. In 2023 alone, approximately 9,000 workers across various companies faced unemployment, emphasizing the challenges and shifts within the dynamic landscape of the gaming sector.