Employment Law

Canadians affected as Unity Software cuts 8% of staff


For the third time in less than a year, Unity Software (Unity) is significantly scaling back its staffing levels.

In a filing to the U.S. Securities and Exchange Commission (SEC) on May 2, the video game software developer announced that it’s cutting 600 jobs, or approximately eight per cent of its workforce, as it “restructures specific teams in order to continue to position itself for long-term and profitable growth.”

A number of employees, including a Toronto-based product manager, shared on LinkedIn that they had been let go.

“Today, 600 people at Unity saw the Game Over screen,” the former product manager’s post reads.

“This may sound counterintuitive, but I’m glad to be let go. While my work has been intellectually stimulating, it lacked deep meaning or connection with what I genuinely care about as a human. I’ll take this layoff as an opportunity to recharge, reflect, and reset.”

According to news outlets, including the Wall Street Journal, the reduction is the largest layoff that Unity has conducted in recent months.

The company eliminated around 225 roles in June and more than 280 employees were let go in January.

Following the latest round of job cuts, Unity is expected to employ a total workforce of approximately 7,000 people.

Major tech layoffs continue

Unity’s second reduction of the year comes amid a flurry of tech sector layoffs.

Several big names, including Shopify, Dropbox, Lyft, Meta, Amazon, Alphabet, Clearco, and Microsoft, have announced deep job cuts in 2023 as they continue to navigate challenging economic conditions.

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Termination agreements for Unity employees

Unity added in the SEC filing that it expects to incur “approximately $26-million in charges in connection with the restructuring” — primarily related to employee transition, worker benefits, and severance payments.

In Canada, non-unionized staff members at the video game software developer are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

Severance for technology industry employees
Severance for provincially regulated employees
Severance packages in mass layoffs

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

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