Unity Software Inc., a big player in video game engine software, has hit the reset button and is laying off 25% of their workforce (1,800 jobs). This news comes as part of the new interim CEO Jim Whitehurst, former CEO of Redhat, plans for a company restructuring or “reset”. Whitehurst has taken over the helm of Unity from then CEO John Reiccitiello, who has since retired and left the board in October 2023 after a massive backlash last year because of new “runtime fee” structures.

TLDR for the new pricing structure is that for every new install for a game using Unity, there will be a charge if the game reaches a certain revenue threshold. This angered game developers as this policy came out of nowhere and also worked retroactively. This would be extremely damaging to games that have the free to play model like ‘Pokemon Go’ or ‘Hearthstone’. Eventually Unity had to walk back its changes for damage control, but it may not be enough as developers plan to move on to other platforms.

Unity under Whitehurst seems to have a lot of restructuring planned as they have already terminated an agreement with special effects house Weta Digital, founded by director Peter Jackson. This has already cost 275 jobs on top of the 600 previously trimmed in May 2023. Hopefully, all this trimming, restructuring and refocusing on their core, the Unity Editor and Runtime, and Monetizations Solutions workouts. We will have to wait and see as Whitehurst plans unfold for Unity. So far, shares for Unity have jumped up approximately 40% since the announced reset by Whitehurst.