Unity to close corporate offices in 14 locations, evaluate real estate footprint

In a regulatory filing on Tuesday, Unity Software said it has committed to a plan to close corporate offices in approximately 14 locations as it evaluates its real estate footprint. The costs and charges associated with the Office Closures, inclusive of potential early termination provisions and sublease income, cannot be reasonably estimated at this time. These costs are expected to be substantially incurred in the fourth quarter of 2023 and the first quarter of 2024. Employees impacted by the Office Closures will have the option to become fully remote, with the exception of specific roles which are location-dependent. On November 25, 2023, as part of the company’s previously announced plans to focus on its core businesses, the company amended certain of its agreements with Weta FX Limited, under which the company terminated its obligations to provide certain services to Weta FX and also amended certain intellectual property rights between the parties. The company will recognize deferred revenue and additional consideration in connection with the amendments of approximately $114M, and will expense the recorded cost of a related contract intangible asset of approximately $131M, which will occur in the fourth quarter of 2023.