Daily news, dev blogs, and stories from Game Developer straight to your inbox
Unity is eliminating 265 jobs and terminating Weta FX partnership
The engine maker is preparing to lay off around 3.8 percent of its global workforce.
November 29, 2023
2 Min Read
Engine maker Unity will cut around 3.8 percent of its global workforce, totaling 265 roles, after ending an agreement with digital effects company Weta FX.
As reported by Reuters, Unity is terminating the 'professional services' agreement it signed with Weta FX after purchasing the company's VFX tools and development division in 2021.
The move was confirmed in an SEC filing, which states that Unity has "terminated its obligations to provide certain services to Weta FX and also amended certain intellectual property rights between the parties."
"[Unity] will recognize deferred revenue and additional consideration in connection with the amendments of approximately $114 million, and will expense the recorded cost of a related contract intangible asset of approximately $131 million, which will occur in the fourth quarter of 2023," it continues.
That same filing also confirms that Unity plans to shutter corporate offices in approximately 14 locations as it evaluates its real estate footprint. The costs and charges associated with those closures include potential early termination provisions, which Unity says "cannot be reasonably estimated at this time."
Unity notes that some employees impacted by the office closures will have the option to become fully remote unless their role is viewed as "location-dependent." This isn't the first time Unity has sanctioned layoffs in 2023, with the company also cutting 600 jobs back in March.
The news comes just a few weeks after Unity confirmed it was reviewing its product portfolio and stated that layoffs were "likely." That review was announced by interim CEO Jim Whitehurst, who stepped up following the recent departure of John Riccitiello.
Riccitiello stood down after Unity attempted to introduce a controversial new runtime fee that left developers reeling, with notable creators and companies threatening to drop the engine over the policy.
Unity eventually back-pedaled and tweaked its runtime fee in an attempt to ease concerns, but its slapdash messaging and failure to engage with developers during the furore has left the company with a mountain to climb when it comes to rebuilding trust.
About the Author(s)
News Editor, GameDeveloper.com
Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.
You May Also Like
Accessibility and fancy footwork with GLYDR's John Warren - Game Developer Podcast ep. 40Feb 28, 2024
Exploring the 2024 State of the Game Industry report - Game Developer Podcast ep. 39Feb 2, 2024
Phantom inspiration and the ethical auteur with Xalavier Nelson Jr.Dec 8, 2023
Designing Killer Queen: from playground experiment to modern arcade sensationOct 18, 2023
Get daily news, dev blogs, and stories from Game Developer straight to your inbox
Subscribe to Game Developer Newsletters to stay caught up with the latest news, design insights, marketing tips, and more