Unity announces company "reset" as it lets go 265 employees, ends agreement with Lord of the Rings VFX studio

Unity has announced another wave of layoffs as it ends its agreement with Lord of the Rings VFX studio as part of a company "reset," according to its current CEO.

As reported by Reuters, Unity will dismiss 265 employees (3.8% of its workforce) due to terminating its agreement with Weta - which it acquired for $1.63 billion in 2021. The company's  interim CEO and president, Jim Whitehurst, tells the outlet that more changes are to be expected at Unity to "refocus" the busines, and that: "While no additions have been finalized, it's clear that we will reduce the number of things we are doing overall."

We heard that this could be a possibility earlier this month, as it was reported that the developer is "likely" facing layoffs after announcing its controversial Unity install fee. In the company's third-quarter financial earnings report, it was revealed that Unity will likely be "reducing [its] workforce" in the next fiscal quarter. As well as the layoffs, Reuters also reveals that the software company will also be closing offices in 14 locations, including Berlin and Singapore.

In case you missed it, Unity's plan to charge developers each time their game is installed (after a certain threshold) was met with widespread criticism from developers, players, and other members of the gaming community. Many studios, specifically indie developers, voiced their concerns and frustrations with the new fee - causing Unity to promise changes but is yet to scrap the plan altogether.

In more positive news, Weta recently announced it was working with publisher Private Division to create a  "cozy" and "heartwarming" Lord of the Rings game called Tales of the Shire. It's still a ways off from release, but if its wholesome teaser trailer is anything to go by, we could be getting some kind of laid-back sim game set in Middle-earth.

Find out what else we've got to look forward to with our new games 2023 list.