Troubled Game Developer Unity Technologies Prepares for Layoffs Despite Q3 Revenue Growth and Reduced Losses

Struggling game engine maker announces layoffs amidst broader company restructuring; interim CEO says changes expected to be completed by Q1 2024, despite a rise in revenue and reduction in losses.

Unity Technologies, developer of prominent video game software, has warned employees of impending layoffs and product cuts as it works to regain profitability and steady cash flow. These changes are expected to be complete by Q1 2024.
The decision comes after a strategic shift under former CEO John Riccitiello deepened losses and lowered the company's stock price. It also comes despite a Q3 revenue increase of nearly 70%, largely attributed to the acquisition of IronSource, a mobile ads business.
Q3 financial results reveal a revenue of $544 million, up 69% from last year, and a net loss of $125 million, halved from $250 million the previous year. These mixed results lead the company to announce further layoffs.
Unity has announced plans to discontinue certain product offerings and reduce its workforce and office space to focus on the most valuable products for their customers. These changes align with the company's shift to a customer-first business model.
Moving forward, Unity plans to refocus on the Unity Editor, Runtime, and Monetization Solutions. There are indications the company sees potential growth in these areas and plans to further explore AI technology.