Unity cuts 8 percent of its workforce in latest round of layoffs

engadget.com:

For the third time in less than a year, Unity is laying off a part of its workforce. On Tuesday, the company shared it would let go of approximately 600 employees or about eight percent of its global workforce. The company previously laid off about 225 staffers last June, and another 284 employees at the start of the year. Prior to the first round of workforce reductions, the company employed more than 8,000 staff. It now has around 7,000 employees. Unity also plans to reduce the number of offices it operates globally.

Unity declined to comment. A spokesperson instead pointed Engadget to a filing the company made with the US Securities and Exchange Commission, as well as a recent interview CEO John Riccitiello did with The Wall Street Journal. “It’s all about setting ourselves up for higher growth,” he told the outlet, adding the layoffs would affect some in middle management. “It was clear we had too many layers.” Riccitiello also said Unity would move to a hybrid work model starting in June, with employees expected to work from the office at least three days a week.

The layoffs come despite Unity recently posting its best fiscal quarter and year in company history. In February, the engine maker reported a Q4 revenue of $451 million, representing a 43 percent increase from the same period in 2021. It was also Unity’s first profitable quarter as a publicly traded company. Despite that performance, investors don’t appear to be impressed with the company. Per CNBC, Unity’s stock is down 11 percent since the start of the year. The company is expected to release its Q1 earnings next week. Unity’s latest layoffs come amid broader workforce reductions across much of the tech industry. Like Unity, a handful of companies,