Employment Law

Unity Layoffs: 1,800 jobs being cut, refocusing ‘core business’

A photo with headphones on using a mouse and keyboard. (Photo: ELLA DON / Unsplash)

Unity Software (Unity) is eliminating approximately 25 per cent of its workforce, or 1,800 jobs, as part of a company-wide restructuring.

The reduction, which is the video game software provider’s largest layoff to date, comes just months after it axed more than 200 roles in November.

What’s happening at Unity?

In a regulatory filing on Jan. 8, Unity said the job cuts are part of the company’s efforts to refocus “its core business” and position itself for “long-term and profitable growth.”

“At this time, Unity cannot reasonably estimate the costs and charges in connection with this reduction, which it expects will be substantially incurred in the first quarter of 2024,” the filing reads.

“The charges will primarily relate to employee transition, severance payments, and employee benefits.”

The latest reduction marks the fourth round of layoffs that the company has conducted since July 2022.

Unity layoffs in Canada

It remains unclear how many Canadian employees could be affected by the job cuts at Unity.

The company told Reuters that the layoffs will impact “all teams, regions, and areas of the business.”

According to Unity’s LinkedIn page, it has more than 1,400 workers in the country.

Termination agreements for Unity employees

In Canada, non-unionized employees at Unity are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

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

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

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

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.

If you don’t receive the correct amount, which happens often, you have been wrongfully dismissed and should take legal action.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

Severance for provincially regulated employees
Rights to severance for tech sector staff
• Severance packages during mass layoffs

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Major tech layoffs continue

Unity isn’t the only major tech company that has announced sweeping job cuts to kick off 2024.

Earlier this month, Xerox confirmed that it’s eliminating 15 per cent of its workforce as it restructures its business.

Both layoffs come after another tumultuous year for the tech sector.

In 2023, big names, including Bolt, Cruise, Etsy, Spotify, Broadcom, ByteDance, Amazon, Informatica, Ubisoft, Bungie, Splunk, and Nokia, pulled out the axe as they continue to navigate challenging economic conditions.

• Firm launches $130M class action against Shopify for breach of contract
Report: Google could cut jobs in ad sales unit amid AI success
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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