Unity, one of the important game engines for game developers, is being shaken by a major downsizing move. Unity made a controversial pricing policy decision at the beginning of 2023. The company, which did not charge a fee for game developers until a certain download, changed this pricing. However, this decision was softened a little with the reactions. By contrast, Unity is shrinking by 25 percent to return to profitability.
Unity decided to lay off 1800 people! Here’s why?
Unity, one of the important companies in the game engine industry, announced record profits in 2022. However, increasing costs and the contraction in the gaming industry also affected the company. The Unity wage policy decision developed for this contraction caused reactions.
After these reactions, the company largely withdrew this new wage policy. Unity is among the important platforms especially for amateur game developers. In this sense, with its new fee policy, Unity has stopped charging fees for games that generate an annual income of less than $ 1 million.
Although this decision helped calm the reactions, it was not healthy for the company’s profitability. Unity CEO John Riccitiello, who was thought to be behind this decision, resigned. His replacement, James Whitehurst, is trying to get Unity back on its feet with the dismissal decisions he has been taking since last year.
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Unity previously announced 1,100 layoffs in 2023. However, the new dismissal decision is more than last year’s total. In this sense, Unity has taken action to lay off nearly a quarter of its global workforce. In this sense, the company closed 14 offices around the world. Unity explained these layoffs as a restructuring process. Thus, the company seeks to achieve a more agile and flexible structure.
Although Unity’s decision to downsize was expected, 2023 did not meet expectations in the gaming world. In this sense, Epic Games decided to lay off approximately 830 people. He also laid off 100 people at CD Projekt RED and Sega. Electronic Arts, on the other hand, laid off 6 percent of its workforce, approximately 1,130 employees.