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Unity makes further job cuts as it ends agreement with Weta FX
29.11.2023 - 11:39 / eurogamer.net / Peter Jackson / John Riccitiello / Jim Whitehurst
Unity is making further cuts to its workforce as it ends an agreement with Weta FX.
The company will eliminate 265 jobs, or 3.8 percent of its global workforce, as part of a company «reset», Reuters reports.
Unity acquired part of Weta FX, the digital effects company founded by Lords of the Rings director Peter Jackson, in 2021 for $1.6bn.
Now, Unity has terminated the professional services part of the agreement, resulting in 265 employees being laid off.
In addition, Unity will shut down offices in 14 locations including Singapore and Berlin and significantly reduce its office footprint in its remaining offices such as San Francisco and Bellevue, Washington.
Jim Whitehurst, interim CEO and president of Unity, said more changes would be on the way to «refocus» the business. «While no additions have been finalised, it's clear that we will reduce the number of things we are doing overall,» he told Reuters.
Weta FX confirmed the move in a statement via FX Guide.
«Weta FX will be extending offers to as many of the team as possible as it looks to expand its research, development and support functions,» a spokesperson said.
«Unity will retain ownership of the technology it acquired from Weta in December 2021 and will be evaluating the best way to enhance its offerings with it over time. The technology will also remain fully available to Weta FX. Weta FX will continue to build and extend the IP, and develop its own tools and techniques, to continue its evolution as a leader in visual effects.»
Earlier this month, Unity announced that more layoffs would be «likely» as it assesses its product portfolio to focus on those products that are most valuable to our customers".
It's been a disastrous year for Unity, following the introduction of its controversial Runtime Fee which received a major backlash from developers. CEO John Riccitiello retired from the company after the announcement.
Approximately 8 percent of the Unity workforce were laid off in May — the third round of layoffs in 10 months at the time of writing.
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