San Francisco-based videogame software manufacturer, Unity Software, is trimming its workforce by 25 per cent, letting go about 1,800 members.
This was revealed in a regulatory filing by the company, as per media reports.
This layoff exercise, across departments, will take place over the next three months.
Many game creators use the Unity software to create their games, including the widely played and popular ‘Pokemon Go’, ‘Beat Saber’ and ‘Hearthstone’.
It was in November 2023 that Jim Whitehurst, CEO, Unity had indicated his intentions to go for a major rehaul. At the time, he’d said that the objective was to ensure profits and success in the longer run by focusing on the primary business.
This isn’t the first round of layoffs at Unity. In November, 2023, it had let go of 265 employees.
Several gaming companies have had to resort to layoffs because of the macroeconomic environment and associated uncertainties. Globally, thousands have been laid off in the gaming space.
Epic Games, known for the game Fortnite, let go 16 per cent of its employees. Ubisoft, associated with Far Cry and Assassin’s Creed let go over 120 members from its worforce. Embracer Group shut down several studios and laid off more than 900 employees post buying the IP rights to The Lord of the Rings.
Experts have predicted that things may not be easy for gaming companies in India in 2024 either. Indian gaming startups may have to bear the burden of the additional GST cost for the next couple of years in order to retain their customer base, which will affect their topline. With limited finances at their disposal it will be very difficult for them to bear this burden and they may have to shut shop.
