Unity Announces Major Layoffs and Ends Partnership with Wētā Digital

Unity, the prominent game engine developer, is facing significant changes with the layoff of 265 employees and the closure of offices worldwide as part of a company "reset." The layoffs affect employees from Wētā Digital, which Unity had acquired in part back in 2021. Wētā FX has expressed intent to rehire many affected workers.

These layoffs coincide with Unity's latest earnings report where new CEO Jim Whitehurst highlighted the need for the company to streamline operations and refocus on efficiency and growth. Despite revenue increases, Unity reported a substantial net loss, with profitability remaining elusive except for one quarter since going public.

This year has been particularly challenging for Unity, with multiple rounds of layoffs totaling nearly 1,100 employees and a controversial new runtime fee policy that was later retracted amidst developer backlash. This upheaval followed the resignation of former CEO John Riccitiello.

The gaming community is closely watching Unity's next moves as it seeks a more sustainable and profitable path forward while trying to retain trust within the industry.