29-11-2023 (SINGAPORE) Unity Software, a prominent provider of video game software, has disclosed plans to lay off 265 staff members and close 14 offices globally as part of what the company terms a strategic ‘reset.’ This move follows the termination of a deal with visual effects (VFX) company Weta FX, founded by acclaimed director Peter Jackson.
Unity Software had initially entered into a deal with Weta FX in 2021, acquiring the technology and engineering division known as Weta Digital for a substantial sum of US$1.6 billion (S$2.1 billion). Weta Digital, renowned for its special effects work on major film projects like the ‘Lord of the Rings’ trilogy and ‘Avatar,’ was expected to experience significant growth under Unity’s ownership. However, the recent announcement reveals the unexpected termination of this agreement, leading to the layoff of 265 employees, primarily from the Weta workforce, representing 3.8% of Unity’s global workforce of 7,000.
In addition to the layoffs, Unity Software has decided to close 14 of its offices worldwide, including the one in Singapore. Interim CEO James Whitehurst stated that the changes are not yet finalized, but there will be a reduction in the “number of things” Unity is currently engaged in. The company also hinted at a downsizing of its remaining office spaces, moving towards a more distributed or remote work model.
This announcement comes after Unity Software faced backlash earlier in the year for altering its pricing model, intending to charge developers fees based on the number of downloads their apps received. The decision was met with strong opposition from game developers and the online community, leading to Unity revising its changes. Subsequently, the long-time CEO, John Riccitiello, retired, and James Whitehurst took over as the interim CEO, initiating several changes to realign Unity’s business focus, as reported by Reuters.
