Videogame software provider Unity to cut 3.8% of staff in 'company reset'

Unity Software, a provider of videogame software, announced on Tuesday its plan to cut 265 jobs, accounting for 3.8% of its global workforce, as part of a strategic reset. This move includes terminating an agreement with a digital video effects company co-founded by the director of Lord of the Rings.

The decision follows a turbulent period for the San Francisco-based company, known for its software toolkit widely used by videogame developers, including the creators of the popular "Pokemon Go" mobile game.

In a bid to enforce a new pricing policy called "runtime fee" in September, Unity faced backlash from developers, leading to a significant drop in its share price. After a developer uproar, the company restructured the new fees.

Amidst these changes, Unity saw its CEO John Riccitiello retire in October, with former IBM president Jim Whitehurst stepping in as interim CEO and president. Roelof Botha, a partner at Sequoia Capital, was appointed as board chairman.

As part of Tuesday's announcement, Unity will end the professional services aspect of its agreement with Weta FX, a visual effects company linked to movie director Peter Jackson. This termination will affect 265 employees connected to the agreement, resulting in their layoffs.

With a workforce of approximately 7,000 employees, Unity plans to close offices in 14 locations, including Berlin and Singapore, and significantly reduce its office spaces in other areas like San Francisco and Bellevue, Washington. The company also intends to revise its office attendance policy, no longer mandating a three-day office presence and reducing full in-office services to three days a week across most locations.

Whitehurst emphasised that further adjustments are forthcoming to realign Unity's business focus, indicating a reduction in the scope of its operations. "While no additions have been finalised, it's clear that we will reduce the number of things we are doing overall," he stated to Reuters.

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