Unity, a prominent San Francisco-based video game company specializing in game engines, has laid off 1,800 employees. Unity's plan to lay off its 25% workforce was revealed in an SEC filing on Monday. Layoff plans were hinted at late last year, with the company citing reasons such as excessive growth and the need to increase efficiency in 2024.
“We are currently working hard, not realizing the synergies that exist across our portfolio, and not executing to our full potential,” the company's CEO, Jim Whitehurst, said in a statement before the layoffs.
Founded nearly two decades ago by three Danish engineers, Unity gained popularity among game developers for its “game engine.” It is also used in other industries such as film and automobiles for 3D visualization and virtual reality. After its initial public offering in 2020, Unity stock reached a peak of around $200 in November 2021, but then fell to less than $30 last year.
2024 layoff forecasts in the Gulf region
These are the San Francisco-based company's largest layoffs ever, and are expected to be completed by the end of March, the company said. Although Unity is not widely recognized outside the gaming industry, more than 1.1 million game creators rely on its software toolkit every month, including the maker of the popular “Pokemon Go,” “Beat Saber” and “Hearthstone” games. .
In recent years, the San Francisco Bay Area has seen an unusually large number of mass layoffs, particularly in the technology sector, with more than 100,000 jobs lost since October 2022. While the recent layoffs are disheartening, technology experts believe that The number of large-scale job cuts and layoffs in the region is likely to be lower than the levels observed in 2022 and 2023.
Although the latter half of 2023 saw a general slowdown in layoffs, with companies easing more layoffs, the start of the new year has proven challenging. Some San Francisco startups implemented layoffs within days of the start of 2024, with Unity leading the way as the first major company to undergo a significant downsizing. Many companies have navigated the uncertainties of coronavirus-related adjustments and established their footing in the office and remote working dynamics.
Challenges facing companies in the Gulf region
Experts note that concerns about office space in San Francisco remain, but some companies are addressing the issue by cutting overhead, which could avoid future layoffs. Remaining cautious, experts expect a gradual recovery in San Francisco later in the year. As more companies report on their financial health in the coming months, the full landscape of the Gulf region's economic trajectory will become clearer.
(With agency input)
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