Unity, the renowned engine maker, has informed shareholders that it intends to undertake significant measures, including layoffs, office footprint reductions, and discontinuation of certain products as part of a comprehensive portfolio assessment. Interim CEO Jim Whitehurst stated that these actions align with Unity's commitment to implementing a customer-first business model while seeking a cost structure that suits its more focused portfolio.

Whitehurst emphasized the importance of a clear focus and the right product offerings in enabling their customer-centric business model, aiming to drive faster revenue growth, improved profitability metrics, and increased cash flow. In a letter to shareholders, he noted that the restructuring plan would commence during the current quarter and is expected to be completed by the end of the first quarter of 2024.

The decision follows Unity's recent release of mixed third-quarter results. Although revenue for the quarter reached $544 million, representing a 69 percent year-on-year increase and falling within Unity's guidance range of $540 to $550 million, Whitehurst expressed the company's belief in its potential for further improvement.

Moving forward, Unity intends to focus its efforts on the Unity Editor and Runtime, as well as Monetization Solutions. Whitehurst identified significant growth opportunities in these areas and highlighted the company's commitment to investing in AI technology.

Unity faced significant criticism earlier this year when it announced a controversial new Runtime Fee, which sparked a backlash from prominent publishers and studios. The company eventually revised its approach in response to developer concerns, but the incident has damaged its standing within the development community, creating a challenge as Unity seeks to regain trust.

As Unity initiates its restructuring plan, shareholders eagerly anticipate the company's strategic actions to position itself for future growth and regain its footing in the industry.