More Ubisoft Layoffs Hit as Development Ends at Red Storm Entertainment

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As a big fan of gaming, it’s always disappointing to hear about layoffs. I just read that Ubisoft is cutting jobs again, and this time it’s hitting Red Storm Entertainment, the studio behind a lot of the classic Tom Clancy games. It’s really sad to see them stop making games, and sadly, 105 people are losing their jobs. It’s a tough time for everyone involved, and I’m hoping those affected land on their feet quickly.

These layoffs aren’t a one-time event; they show a larger change happening at Ubisoft. The company, which used to be a leader in the gaming industry, is now focusing on streamlining its operations and how it makes games.

What the Layoffs Mean

Red Storm Entertainment will continue to operate, but in a reduced capacity.

The North Carolina studio will likely concentrate on IT support and managing customer interactions. Experts believe this signals a shift away from creating entire games. While the studio won’t stop all technical work, it will primarily focus on the Snowdrop game engine, originally created by Ubisoft’s Massive Entertainment.

According to a source at Ubisoft, workers who were laid off will receive help, such as severance pay and other support services.

Ubisoft’s Ongoing Challenges

Ubisoft has been struggling with difficulties for some time. Starting in 2023, the company began trying to simplify its business, which included several rounds of layoffs. This started with cuts at its Hybride VFX studio in Montreal and continued in the following years. According to TechRadar, Ubisoft San Francisco and Red Storm lost 45 employees in August 2024, and another 19 positions were eliminated in July 2025.

Adding to the challenges facing the gaming industry, some major game releases didn’t do as well as hoped. Both Star Wars: Outlaws and Avatar: Frontiers of Pandora, which were made by Massive Entertainment, received mixed reviews and didn’t sell as many copies as expected. Shortly after, Massive Entertainment announced a “voluntary career transition program,” which many people in the industry believe is a way of saying they will be laying off employees.

In November 2025, worries increased when Ubisoft unexpectedly stopped trading its stock and postponed announcing its financial results for the first half of the 2025–26 fiscal year. Although Ubisoft didn’t offer a reason, experts believed this suggested problems within the company.

The Company Reset

The closure of Red Storm Entertainment seems to be one piece of a larger restructuring Ubisoft announced in January 2026. As part of this, Ubisoft canceled six games, postponed seven, and closed studios in Halifax and Stockholm.

Over the past two months, Ubisoft has carefully examined its upcoming projects. As a result, the company has decided to change its plans, shift its resources, and create a new strategy for the next three years.

Now, it appears that closing Red Storm is the latest casualty of that restructuring effort.

The End of an Era

Red Storm Entertainment started in 1996, named after the Tom Clancy novel Red Storm Rising. Ubisoft bought the studio in 2000, and it remained a key developer of games based on Clancy’s books. The Red Storm Entertainment logo eventually became closely associated with the Tom Clancy brand, appearing on popular game series like Splinter Cell, Rainbow Six, Ghost Recon, and The Division.

The recent layoffs at Ubisoft and the closing of a long-standing studio could represent a turning point for the company. Though its popular game series will probably still be made, many will feel the loss of Red Storm Entertainment as a significant change.

What do you think about the latest round of layoffs at Ubisoft?

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2026-03-23 17:56