Unity Software, a leading videogame software provider, announced a significant workforce reduction. The San Francisco-based company plans to cut 265 jobs, equating to 3.8% of its global workforce. This decision is part of a broader “company reset.” Unity is known for its software toolkit, widely used by game developers, including those behind “Pokemon Go.”
The company has faced challenges recently. In September, Unity attempted to introduce a new “runtime fee” pricing policy. This policy would impose additional fees on game developers based on revenue and installation thresholds. However, facing a backlash from developers and a subsequent drop in share price, Unity revised these fees.
Executive changes
Further upheavals occurred in October. Unity’s CEO John Riccitiello stepped down, leading to significant executive changes. Jim Whitehurst, former IBM president, assumed the roles of interim CEO and president. Additionally, Sequoia Capital partner Roelof Botha was appointed as board chairman.
Termination of Weta FX agreement
A major aspect of Unity’s reset involves ending a professional services agreement with Weta FX. This digital video effects company, founded by “Lord of the Rings” director Peter Jackson, partnered with Unity in 2021. Following this partnership, Unity acquired the technology and engineering division of Weta FX. The termination of this agreement directly affects 265 employees, who will face layoffs.
Office closures & remote work shift
Unity’s restructuring extends beyond staff and executive changes. The company will close offices in 14 locations, including Berlin and Singapore. The process is subject to employee consultation in certain countries. Furthermore, Unity plans to significantly downsize its office presence in remaining locations like San Francisco and Bellevue, Washington.
Reflecting changing work dynamics, Unity is altering its remote work policy. Employees will no longer be required to work from offices three days a week. Instead, “full in-office services” will be available for three days a week in most locations.
Future focus
These changes are part of a larger strategy to refocus Unity’s business operations. According to the interim CEO Jim Whitehurst more changes are expected. He indicated that while no final decisions have been made, the company will likely reduce its range of activities. This approach is aimed at streamlining operations and stabilizing the company’s position in the market. Unity’s total workforce stands at around 7,000, indicating the scale of the potential impact of these changes.
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