Job Cut

3.8% Job Cuts announced by Unity Software as Part of Strategic Company Reset

Unity Software, known for creating tools used by game developers worldwide, is making significant changes. The company is set to reduce its global workforce by 3.8%, which amounts to 265 jobs. Additionally, they will terminate a partnership with a digital video effects company founded by the director of “Lord of the Rings” as part of a broader strategic “reset.”

This decision comes after a challenging period for the San Francisco-based company, renowned for its software toolkit utilized by various game developers, including the creator of the widely popular “Pokemon Go” mobile game.

Back in September, the company attempted to introduce a new pricing policy called the “runtime fee.” This policy involved charging additional fees to game developers when specific revenue and install thresholds were reached. However, due to strong opposition from developers and a significant decline in the company’s stock value, they decided to revise the fee structure.

Moving into October, Unity saw a change in leadership. The CEO at the time, John Riccitiello, retired. In his place, the company appointed Jim Whitehurst, a former president at IBM, as the interim CEO and president. Roelof Botha, a partner at Sequoia Capital, also took on the role of board chairman.

In Tuesday’s announcement, Unity revealed significant changes to its operations. One notable move is the termination of the professional services part of an agreement with Weta FX, the visual effects company founded by movie director Peter Jackson, which Unity had entered in 2021. This decision will result in the layoffs of 265 employees associated with that agreement.

With a total workforce of around 7,000, Unity is also taking steps to reshape its physical presence. This involves closing offices in 14 locations, including Berlin and Singapore. The company plans to engage in employee consultations in certain countries regarding these closures and intends to significantly reduce its office space in the remaining locations, such as San Francisco and Bellevue, Washington.

As part of a broader shift, Unity is changing its approach to remote work. It will no longer require employees to be in the office three days a week, and the company is scaling back “full in-office services” to three days a week in most locations.

Jim Whitehurst, the interim CEO, mentioned that more changes are on the horizon to “refocus” Unity’s business. While specific details are yet to be finalized, the company aims to streamline its activities and reduce the overall scope of its operations.

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