Unity lays off 265 employees as part of strategic "company reset"

Unity announced today that it is terminating parts of its agreement with Weta Digital and laying off 265 employees as a result. According to Reuters, the job cuts will impact roles related to a professional services agreement with Weta FX, the visual effects company co-founded by Lord of the Rings director Peter Jackson.

The animation and VFX company had been partially acquired by Unity in 2021 for $1.625 billion, with Peter Jackson's Weta FX retaining the rest. As part of the deal, Weta FX retained the use of those tools through a professional services agreement.

However, Unity has now decided to end the agreement. In a statement, the company said it needs to focus on its core games business and that it makes more sense for Weta FX to support the use of the tools directly. Weta FX, on the other hand, says it aims to rehire as many of the affected Weta Digital team members as possible.

In addition to the job cuts, Unity plans to close offices in 14 locations around the world. It will also significantly reduce office space in major hubs such as San Francisco and Bellevue, Washington.

Going forward, Unity said it will be more flexible about remote work. The company will no longer require employees to come into the office three days a week, instead reducing in-person time to three days in most locations.

The changes come as Unity's new leadership tries to refocus the business. In October, Jim Whitehurst became interim CEO after John Riccitiello retired. Sequoia Capital's Roelof Botha also took over as board chairman. The company stated he would "continue to advise Unity to ensure a smooth transition."

Unity has faced turbulence before when a new pricing policy for game developers backfired. Today's changes aim to reset Unity's strategy after that misstep shook investor confidence.

Source: Reuters

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