Unity is eliminating 265 jobs and terminating Weta FX partnership

29.11.2023 - 13:37 / gamedeveloper.com / John Riccitiello / Jim Whitehurst

Engine maker Unity will cut around 3.8 percent of its global workforce, totalling 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-pedalled 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.