Ubisoft is restructuring, resulting in layoffs at two of its studios. Fifty-five employees at Massive Entertainment, the developer of Star Wars Outlaws and The Division 2 & 3, and Ubisoft Stockholm will be affected. According to an internal email reported by GamesIndustry.biz, these cuts aren’t due to performance problems, and the studios’ future plans remain the same.
In the same email, Ubisoft also mentioned that its studios are enhancing the Snowdrop engine and Ubisoft Connect. They described this work as a new, currently unannounced tech project that’s expected to be key to the future development of both the engine and the platform for distributing games.
This news follows Ubisoft’s recent announcement of a program offering voluntary layoffs at its Massive Entertainment studio. The company asked some employees if they would voluntarily leave their positions, and those who agreed were promised a generous severance package with both financial support and help finding new jobs.
In October, we announced some changes to how our teams and resources are organized. This was done to better support our plans for the future, especially for The Division franchise and the technology behind our games, like Snowdrop and Ubisoft Connect. We’re focusing on strengthening our development roadmap to ensure continued success.
According to a recent report from GamesIndustry.biz, some employees at Massive Entertainment have chosen to participate in Ubisoft’s voluntary layoff program. While the specific number of participants isn’t public, the program has apparently been utilized.
The report indicates this is the second round of layoffs at a Ubisoft studio this year, even though it’s only just begun. Earlier this month, Ubisoft Halifax was closed, impacting 71 employees. Notably, the Halifax studio was also in the process of forming a union – the first labor union within Ubisoft in North America.
In the last two years, Ubisoft has been working to simplify its business, become more efficient, and lower expenses. As part of this effort, the company has made the tough decision to close its studio in Halifax, which will impact 71 employees. Ubisoft says it will support those affected with severance packages and help finding new jobs.
Last year was difficult for Ubisoft, marked by significant job cuts. The company reported in November that it had laid off 1,500 employees in the past year as part of a plan to cut costs. They aimed to reduce basic spending by €200 million by 2026 and an additional €100 million by 2027.
During the earnings call, CEO Yves Guillemot discussed significant investments in generative AI, describing it as a game-changer for the industry and a key part of the move towards 3D technology.
According to Guillemot, we’re seeing significant progress in using generative AI for important applications that directly benefit our players and teams. He believes this technology is as transformative for the gaming industry as the move to 3D graphics, and that we are well-positioned to be leaders in this area.
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2026-01-13 18:15