The layoffs are related to the termination of a professional services agreement Unity had with digital effects company Weta FX, Reuters reports.
The deal was struck after Unity acquired Weta’s technology and engineering division in December 2021 for $1.625 billion.
Unity’s quarterly earnings report this month confirmed planned structural changes, which it said would likely include discontinuing certain products, reducing its 7,000-strong workforce, and cutting its office footprint.
The company has now said it will close offices in 14 locations including Berlin and Singapore, pending employee consultation, and reduce its office footprint for the remaining ones, including those in San Francisco and Bellevue.
Employees will no longer be required to work from the office three days per week, while office-based services will be reduced.
Unity announced last month that John Riccitiello was stepping down as president and CEO effective immediately.
His departure came weeks after the company sparked a backlash from the development community by announcing controversial monetisation plans for its popular game development engine, which it partially walked back following the outcry.
Former IBM president James Whitehurst, who was appointed as Unity’s interim president and CEO when Riccitiello left, told Reuters that further changes designed to “refocus” the company were planned.
“While no additions have been finalised, it’s clear that we will reduce the number of things we are doing overall,” he said.
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