Unity has laid off more staff in retaliation for its install fee scandal

Unity is in the midst of another round of layoffs, affecting various departments, including the team responsible for its non-player character (NPC) creation tools. The company’s precarious position continues amid previous layoffs and a scandal over the introduction of a fee for developers based on the number of game installs.

Image source: Unity

The layoffs affected multiple teams within the company, The Verge reported. Layoff notices were sent out via email early Tuesday morning. The main casualty was the entire Behavior division, which developed tools for non-player characters, according to a post on the Unity forums, though it’s unclear how many employees were laid off.

One of the reasons for the layoffs was the company’s botched implementation of the Runtime Fee. The fee, which initially involved charging developers a small fee for each download of a game made with Unity, drew sharp criticism from indie developers. Many expressed their concerns on social media, with some even threatening to boycott the software.

The backlash led to Unity revising the Runtime Fee to eliminate the install fee, and CEO John Riccitiello resigning less than a month after the fee was announced.

Recall that the last two years have been difficult for Unity, marked by several rounds of layoffs and other upheavals. In January 2024, the company cut 25% of its staff, which amounted to about 1,800 employees. Before that, in November 2023, Unity closed several offices and laid off 265 people. As analysts explain, “with such actions, the company is trying to optimize its costs.”

The Verge reached out to Unity for comment but has yet to receive a response. The situation at Unity remains tense.