Unity announces layoffs despite increased revenue and reduced losses
Unity has released its financial results for the three months ended September 30, 2023, announcing layoffs despite a significant growth in revenue and a drop in overall net loss.
Unity's revenue increased 69% year-over-year to $544 million, while it reported a net loss reduced by half to $125 million, compared to $250 million during the same period last year.
Despite this, Unity has announced more layoffs as a result of a "comprehensive assessment of its product portfolio" at the beginning of its fourth quarter, as detailed in its Q3 2023 report.
"The assessment will likely lead us to decide to discontinue certain offerings, reduce our workforce and reduce our office footprint," the company said.
It added: "The timing and full impact of these types of changes on our future results of operations, cash flows, or financial condition are uncertain, and for those reasons we are currently unable to reasonably quantify the potential impacts through the fourth quarter of 2023."
As a result, the company did not provide any guidance for Q4 or the full year 2023.
During Unity's earnings call (transcribed by Seeking Alpha) following the release of its Q3 results , Unity's CFO Luis Visoso said decisions would be made and implemented during this quarter, with a target of being finalised by Q4 2023.
"It's not like a business model transition that takes a year or two years to complete," said Visoso. "These are things we were planning to do and executing now."
This was referred to as a "rip off the band-aid reset" by interim CEO James Whithurst.
Looking at Create Solutions revenue (the division in charge of Unity's engine), core subscriptions were up 19% during Q3 but revenue was flat year-on-year.
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