November 28, 2024

Unity: Game developing studio Unity may announce job cuts in 2024

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US-based game software development studio is “likely” to make job cuts next year. The company is expected to announce the layoffs before the end of Q1 2024 (which is April) to cut costs. In a letter to shareholders shared by the company, interim CEO Jim Whitehurst said he believes that the company has “a significant opportunity to accelerate revenue growth, improve profitability metrics and increase free cash flow generation going forward.” However, the company currently isn’t being executed to its “full potential.”
He added: “We aim to address these opportunities to emerge as a leaner, more agile, and faster growing company.”
The letter also revealed that the company started a “comprehensive assessment” of its product portfolio to “focus on those products that are most valuable to our customers.” Unity is also “evaluating the right cost structure that aligns with the more focused portfolio.”
While “final decisions” on this will be made “over the next few weeks,” the company gaming studio expects to roll out its plan within this quarter, and “complete all interventions” before the end of Q1 2024.
The company says: “This will likely include discontinuing certain product offerings, reducing our workforce, and reducing our office footprint.”
Unity criticised for Runtime Fee policy
In September, Unity announced the controversial “Unity Runtime Fee”. Earlier, the company said that developers who used its engine to build their games and titles that have surpassed certain thresholds (based on their game’s lifetime installs and yearly revenue), will be subject to an extra monthly fee. This fee will be calculated using the additional number of game installs per month.

This announcement met with a lot of criticism and forced the company to change its policy. President of Unity Create, Marc Whitten apologised for the company’s policy. He also confirmed that Unity Personal and Plus users will no longer be affected. However, the Runtime Fee will only apply to games created with the next long-term support (LTS) which is set to release in 2024.



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