What happened now? Unity, the developer of the San Francisco-based game engine of the same name, is parting ways with hundreds of employees as part of planned cost-cutting measures. Unity confirmed the layoffs in a statement to Protocol, noting that approximately four percent of its employees will be affected by the decision. That equates to just over 200 employees, based on data from last year’s SEC Form 10-K.

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The company said it has decided to reallocate some of its resources to better focus and support its long-term growth. “We are grateful for the contributions of those leaving Unity, and we support them through this difficult transition,” a spokesperson told the publication.

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Software Specialist was founded in 2004 and became public at the end of 2020. The past year has been something of a roller coaster, but 2022 has mostly been a downturn. Since the beginning of the year, Unity’s share price has fallen by more than 72 percent.

This was reported by sources familiar with the situation. Kotaku that about two weeks ago, Unity held a general meeting where CEO John Riccitello assured employees that the company was not in financial trouble and that no one would be fired.

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Kotaku said Unity will pay employees who were fired for an extra month and then offer additional severance pay and health insurance.

as protocol Basic moments, Unity’s main competitor is Epic Games. Unlike Epic, Unity doesn’t develop any games of its own, but instead relies solely on royalties from its engine. At the time of writing, Unity has a market capitalization of around $11.14 billion.