Unity Software’s Major Overhaul: Job Cuts and Office Closures in a ‘Company Reset
Do you remember the time when everyone suddenly became addicted to Pokemon GO a few years back?
Well, the software company behind that viral game is Unity Software, an American video game software development company based in San Francisco.
At its peak, Unity Software boasted a total workforce of approximately 7,000 employees.
Those were the days when the company was raking in massive profits thanks to the Pokemon GO craze.
Just to give you an idea of the scale, the average salary for a game developer at Unity is $115,773 per year.
Now where’s the job fair for Singaporeans to work in San Francisco?
However, on the 28th of November, the company dropped a bombshell announcement—they were going to do a “company reset,” as reported by Reuters.
So, what does this “reset” entail?
In essence, this means that 265 jobs will be eliminated, accounting for a 3.8% reduction in its global workforce.
Sadly, this also includes the closure of its Singapore office, among others, such as the one in Berlin.
While employee consultations in some countries are still pending, it’s clear that the office landscape for Unity is about to change significantly, including locations like San Francisco and Bellevue, Washington, where office footprints will be notably reduced.
Additionally, Unity will no longer require employees to work from offices three days a week, and most locations will see a reduction in full in-office services to just three days a week, as stated by the company.
Before we delve deeper into this “reset,” let’s take a step back and look at the events leading up to this significant announcement.
Back in September, the company attempted to introduce a new “runtime fee” pricing policy, which would impose additional charges on its game developers if certain revenue and installation thresholds were met.
However, this move was met with fierce resistance from developers, and Unity Software’s share price took a sharp nosedive.
Consequently, the company had to rework its fee structure.
Then, in October, Unity’s chief executive, John Riccitiello, retired, leaving the company in a state of transition.
The reins were handed over to former IBM president Jim Whitehurst, who assumed the roles of interim CEO and president, while Sequoia Capital partner Roelof Botha was appointed as board chairman.
Mr. Whitehurst shared with Reuters that more changes were in the pipeline as Unity sought to “refocus” its business.
The final piece of the reset puzzle involved an agreement with a digital video effects company founded by none other than the “Lord of the Rings” director himself.
In conclusion, Unity Software, the company that once soared to great heights with the Pokemon GO phenomenon, is now undergoing a substantial transformation through a “company reset.”
While it may be a challenging period for the company and its employees, it remains to be seen how these changes will shape Unity’s future in the dynamic world of game development.