Unity "likely" to announce layoffs to cut costs

Unity is "likely" to announce layoffs as part of broader cost cutting measures.

As noted in the company's Q3 earnings report, Unity is assessing its product portfolio "to focus on those products that are most valuable to our customers" and is "evaluating the right cost structure that aligns with the more focused portfolio".

Changes will be completed before the end of Q1 in 2024, which will "likely include discontinuing certain product offerings, reducing our workforce, and reducing our office footprint" (thanks The Verge).

Newscast: Why are there so many games industry layoffs?

Sadly, these cost cutting measures come as little surprise after 8 percent of the workforce was laid off in May - the third round in 10 months.

More recently, Unity made the disastrous move to reveal plans for a new Runtime Fee policy to charge developers for each game install. Though the company later announced significant changes, the damage was done as angry developers criticised the policy.

Unity CEO John Riccitiello retired from the company in the wake of the controversy.

A report a month later claimed the new policy was "rushed out", with the company's long-term profitability and falling share price as deciding factors. Unity stock prices have steadily lowered but dropped significantly following announcement of the Runtime Fee policy.

It's unclear how many employees will be affected by layoffs in the future, though Unity's revenue fell within expectations despite plans to cut costs. "While revenue came in within guidance, we believe we can do better," the report reads.

The industry as a whole has been hit by frequent rounds of layoffs this year. Just yesterday, Warframe developer Digital Extremes announced a "number of" layoffs at the studio. That follows the likes of Ubisoft, Bungie, and Media Molecule in just the past couple of weeks.