In a just-released Q3 Financial report, game development software company Unity has alluded to more cost-cutting measures and stops just short of actually announcing more layoffs as part of their future plans.
In their Q3 financial report, Unity has referenced potential cost-cutting measures that “aligns with the more focused portfolio,” and these cost-cutting measures could potentially lead to a fourth round of layoffs for the software company since the beginning of 2022. Found first by The Verge, the Q3 Financial Statement details other measures, but the most glaring detail explained is how the company basically stops just short of confirming more layoffs will occur. This comes after favourable Q1 and Q2 financial reports showing Unity is exceeding expectations, with projections of over $2B in revenue.
In the opening statement from new CEO James Whitehurst (who took over after previous CEO John Riccitiello stepped down), he says, “However, we are currently doing too much, we are not achieving the synergies that exist across our portfolio, and we are not executing to our full potential. We aim to address these opportunities to emerge as a leaner, more agile, and faster-growing company.” The previous CEO resigned shortly after Unity announced their new monetization model for their development software and received intense backlash from users. After John Riccitiello stepped down, Unity then walked back their ‘cost per download‘ plans.
After mentioning “significant opportunities for growth in these businesses, including AI” under a category called “strengthening our performance,” Unity’s financial statement then lists numerous ways the company can improve and see ‘opportunities’ moving forward, mentioning a “customer first business model.” The Guidance statement then reads, “We expect to start implementing the plan within this
quarter and expect to complete all interventions before the end of the first quarter of 2024. This
will likely include discontinuing certain product offerings, reducing our workforce, and reducing
our office footprint.” Although that gives a clear timeframe for ‘intervention,’ the company says it’s difficult to tell when they can occur.
While the Q3 financial statement suggests earnings are within expectations, it appears the company will be looking for a “leaner, more agile, and faster growing” company moving forward after ‘interventions.’ Fans can check out the entire Q3 financial statement here for more information.
