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It Cost Unity $205 Million To Make Mass Layoffs

In order to cut costs, you have to spend money. Unity revealed on Thursday that it had to spend $205 million as part of its restructuring efforts — which included mass layoffs — throughout 2024.

According to the company, the money was spent mostly on “incremental” separation costs for the employees being let go. This included $127 million worth of “incremental stock-based compensation”.

“Of the incremental employee separation costs, $15 million are within cost of revenue, $46 million are within research and development, $52 million are within sales and marketing, and $92 million are within general and administrative,” Unity said.

The company added that in they also had $45 million in restructuring costs related to office closures.

In January 2024, Unity announced plans to let go 25% of its workforce. The decision was made to allow the company to “focus on our core business and drive our long-term success and profitability”, according to CEO Jim Whitehurst.

The layoffs and changes came after Unity announced a controversial change to its runtime fees. A change that was ultimately reversed after backlash.

As part of its earnings call, Unity revealed that it’ had $1.4 billion’s year-over-year revenue for the quarter fell to $446.5 million from $544.2. That’s despite operating expenses falling from $520.3 million to $461.6 million. Overall, the company reported a net loss of $124.5 million for the third quarter.


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