Unity is laying off around 4% of its staff
Unity is laying off around 4% of its workforce, games industry news sites are reporting.
“As part of a continued planning process where we regularly assess our resourcing levels against our company priorities, we decided to realign some of our resources to better drive focus and support our long-term growth. This resulted in some hard decisions that impacted approximately 4% of all Unity workforce.”
Unity has a statement now confirming the layoffs and also confirming they’re affecting 4% of its workforce, or slightly more than 200 people going off the latest employee count from last year’s SEC 10-K form. pic.twitter.com/T8KfxpKqZt
— Nick Statt (@nickstatt) June 30, 2022
Too much growth in too little time?
After floating on the stock market in 2020, Unity expanded rapidly, taking on over 2,000 full-time staff.
Weta is one of over 15 firms acquired by Unity since the beginning of 2019, with other notable buyouts in the CG tools sector including SpeedTree developer IDV and rigging tools developer Ziva Dynamics.
In its most recent SEC filing, Unity identified this rapid growth as a potential risk factor, warning that “we have a limited history operating our business at its current scale”.
The filing notes specifically that “the acquisition of certain of Weta Digital’s assets may cause a disruption in our business”, citing the cost of the buyout itself, and stating that the resulting “diversion of management’s attention … away from day-to-day business concerns … could adversely affect our financial results”.
In May, Unity announced record quarterly revenue of $320.1 million, but also widening operating losses, leading to the company lowering its guidance for the full financial year.