Unity Software announced another round of layoffs, this time ending an agreement with a digital effects company and 265 employees as a part of a "reset" in the company.
The game development platform is set to eliminate 3.8% of its workforce and close down 14 services as the company "increase our focus to our core." This is the third mass layoff this year.
Unity will also no longer require the remaining employees to work from offices three days a week while also cutting back "full in-office services" to three days per week in several locations.
The company, however, will retain ownership of all the technologies it acquired from Weta, the studio said in a statement.
Unity acquired Weta Digital in 2021 for $1.63 billion. The deal includes the visual effects studio's tools, pipeline, technology, and engineering.
Weta is responsible for the visual effects in the "Lord of the Rings" trilogy and was founded by its director, Peter Jackson.
Many of the laid-off employees came from the Weta division.
Unity 'Runtime Fee' Controversy
The layoffs came amid Unity's announcement of a new fee policy, taxing game developers after certain revenue and install thresholds were met.
The gaming platform has seen massive shares drop following game developers' protests.
For perspective, Unity hosts Nintendo's mobile games like Pokemon GO and Pokemon Unite. Indie games like Hollow Knight, Subnautica, Rust, Ori, and Cuphead also uses Unity engine.
Unity later revamped the runtime fee to a lower price after strong pushback from the gaming community.
Interim CEO Jim Whitehurst said the company will "refocus" on its main products, the Unity Editor, Runtime, and Monetization Solutions.
Long-serving CEO John Riccitielllo walked out during the "runtime fee" debacle.
Related Article : Unity's Updated Runtime Fee Policy Pleased Game Devs
Future of Unity Software
It remains uncertain how Unity will recover from the financial slump following controversies and downsizing.
Whitehurst said the company is currently reducing its "office footprints" in order to minimize expenses.
Unity remains in competition with the more highly profitable Unreal Engine under Epic Games.
