Laying off 1800 employees cost Unity more than $200 million
In 2024, the company Unity conducted the largest layoffs in its history, parting with 25% of its employees as part of a restructuring. In a recent report for the U.S. Securities and Exchange Commission, it disclosed the costs incurred due to this action.
According to Unity, as of December 31, 2024, its staff numbered 4,987 employees, which is 1,761 fewer than at the end of 2023. Over the year, the company spent $214 million on layoffs.
Additionally, another $53 million was spent on other restructuring-related matters. The specifics of these are not disclosed. The report states only that the majority of these expenses were categorized under R&D, or research and development expenses.
Unity also reported that the year 2024 resulted in a revenue decline for the company.
- The company's total revenue compared to 2023 fell by 17.1% to $1.8 billion.
- Revenue from the Grow Solutions segment (monetization tools) decreased by 9.7% to $1.2 billion.
- Revenue from the Create Solutions segment (development tools) plummeted by 28.5% to $614 million.
- At the same time, Unity's net losses improved. By the end of 2024, they amounted to $664 million, which is 19.6% less than at the end of 2023.
Despite everything, Unity remains optimistic about the future of the company. Specifically, they are pleased with the release of Unity 6, which has been downloaded 2.8 million times since October 2024.