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Unity Lays Off 25% in Dramatic Refocus After Monetization Backlash

Game engine maker Unity has announced plans to lay off approximately 1,800 employees, constituting around 25% of its workforce. 


The decision is part of a company-wide restructuring aimed at refocusing on its core business for long-term growth. This marks the fourth round of layoffs within the last year for Unity, following a period of notable instability. The San Francisco-headquartered firm expects to complete the layoffs by the end of its fiscal year in March, affecting all areas and regions of its business. The move follows the departure of former President and CEO John Riccitiello, who stepped down in October amid controversy over the company's monetization plans for its game development engine.


Unity's restructuring comes after the company faced backlash from the development community for its controversial monetization plans, which were later partially revised. The interim president and CEO, James Whitehurst, had previously indicated plans for further changes to refocus the company. Unity's quarterly earnings report in November confirmed structural changes, including discontinuing certain products and reducing its workforce of 7,000 employees. 


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