Unity Revealed the Costs of Its Layoffs

In its recent financial report, Unity revealed how much it cost to lay off its workers earlier this year. In January 2024, Unity announced its plan to let go of 1,800 employees, which was about 25% of its workforce. It was the largest layoff in the company's history and was a part of the "company reset."

"In January 2024, we committed to a plan to eliminate approximately 25% of our workforce," reads the report. "We mutually agreed to the departure of the founders of ironSource Ltd." According to the data, the cost of the employee separation constituted "approximately $205 million in the nine months ended September 30, 2024, which included $127 million of incremental stock-based compensation."

The overall sum consisted of $15 million within cost of revenue, $46 million within research and development, $52 million referring to sales and marketing, and $92 million within general and administrative.

According to its plan dated November 2023, the company spent $45 million on restructuring, "primarily related to office closures." Back in November last year, Unity announced changes in its structure and production, including "discontinuing certain product offerings, reducing workforce, and reducing office footprint."

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