Unity Software, the company behind one of the world's most popular game engines, is laying off about 25% of its staff, amounting to around 1,800 jobs—a substantial downturn for the industry. This decision is part of a larger "company reset" as the firm looks to streamline its focus on core business and long-term profitability. These layoffs signify an unsettling trend in the gaming industry, with giants such as Epic Games, Embracer Group, and EA Games also announcing cutbacks. The cumulative job loss at Unity is approaching 3,000 after several rounds of layoffs since 2023. Unity's difficulties increased significantly after a controversial installment fee policy led to the resignation of its previous CEO John Riccitiello. With Unity's new direction under interim CEO Jim Whitehurst, the company is aiming to become more agile and focused.

Why is Unity Software laying off so many employees?

Unity Software is conducting these layoffs as a strategic move to concentrate on their core business and increase long-term success and efficiency. These changes come after backlash from the community over policy decisions and a broader industry trend toward cost reductions.

About Unity Software: Unity is renowned for its versatile game engine, which is a fundamental building block for many indie and AAA games alike. It rose to prominence for making game development more accessible and offers a comprehensive set of tools for developers to create and manage interactive content. Games like "Genshin Impact" and the upcoming "Hollow Knight: Silksong" are examples of popular titles that utilitize Unity's technology. As the company grapples with internal changes, the gaming community keenly watches to see how it impacts the landscape of game development moving forward.