Unity Software, a videogame software manufacturer based in San Francisco, has decided to reduce its workforce by 25%, which means about 1,800 members will be let go across departments in the next three months. According to media reports, the company reported this layoff exercise in a regulatory filing. Unity Software is a popular choice among game creators to develop their games, including well-known games such as ‘Pokemon Go’, ‘Beat Saber’ and ‘Hearthstone’.
In November 2023, Jim Whitehurst, CEO of Unity, had announced his intention to restructure the company. He had stated that the objective was to focus on the primary business to ensure long-term profits and success. This isn’t the first time Unity has gone through layoffs; it had previously let go of 265 employees in November 2023.
Several other gaming companies have also had to lay off employees in the current macroeconomic environment. For example, Epic Games, the company behind the famous game Fortnite, let go of 16% of its employees, Ubisoft, known for Far Cry and Assassin’s Creed, laid off over 120 employees, and Embracer Group shut down several studios and laid off more than 900 employees after acquiring the IP rights to The Lord of the Rings.
Experts predict that gaming companies in India will also face challenges in 2024. Indian gaming startups may have to bear the burden of additional GST costs for the next couple of years to retain their customer base, which will affect their revenue. Due to limited finances, it may be difficult for them to bear this burden, and they may have to shut down.