Tech Layoffs: Unity conducts third round of job cuts, removes 8% of workforce

Video game software developer Unity has announced its plans to reduce its global workforce by around 8 per cent, which translates to approximately 600 employees. This is the third round of layoffs within a year, with 225 employees let go last June and 284 at the start of this year. Prior to the first layoff, the company had over 8,000 employees, and it currently has around 7,000. Unity also aims to decrease the number of its offices globally.

Unity made the announcement in a US Securities and Exchange Commission filing. Recently CEO John Riccitiello revealed that some middle management positions would be affected due to the layoffs. He claimed that the company had too many layers and required restructuring to achieve higher growth. Furthermore, Unity wants employees to start coming to office more often. The company intends to shift to a hybrid work model starting in June. Employees will have to work from the office at least three days per week according to this new mandate.

According to a report by Engadget, despite posting its best fiscal quarter and year in company history, Unity has decided to lay off employees. The company reported a revenue of $451 million in Q4 of February, which is a 43 per cent increase from the same period in 2021 and the first profitable quarter since becoming a publicly traded company.

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Despite multiple rounds of layoffs, investors seem unimpressed with Unity's performance as its stock has gone down by 11 per cent since the beginning of the year, according to CNBC. Unity is expected to reveal its Q1 earnings next week.

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