Ubisoft has announced a new round of lay-offs, this time affecting Star Wars Outlaws and The Division 2 and 3 developer Massive Entertainment, and Ubisoft Stockholm affecting 55 employees. According to GamesIndustry.biz, an internal email referred to these lay-offs as being unrelated to any potential performance issues. Along with this, Massive Entertainment and Ubisoft Stockholm have also been assured that “the long-term direction for the studios remains unchanged.”
Further in the same email, Ubisoft has also noted that the studios are working on improvements to the company’s in-house Snowdrop engine and Ubisoft Connect, referring to the work as “an unannounced innovative tech project” that is expected to “play a central role in the development” of the engine and the digital distribution platform.
This comes just a few months after Ubisoft had announced a “voluntary career transition program” for Massive Entertainment, asking some of the studio’s employees to be subject to voluntary lay-offs. Employees that agreed to this program would be offered a “comprehensive” severance package “that includes financial and career assistance.”
“As part of our ongoing evolution and long-term planning, we have recently realigned our teams and resources to strengthen our roadmap, ensuring our continued focus on The Division franchise and the technologies, including Snowdrop and Ubisoft Connect, that power our games,” wrote the studio in its statement from back in October.
Interestingly, the report by GamesIndustry.biz has noted that this voluntary lay-off program had seen some employees of Massive Entertainment take Ubisoft up on its offer. Exact numbers haven’t been revealed, however.
According to the report, this is going to be the second round of lay-offs affecting one of Ubisoft’s studios despite the year barely having started. Ubisoft Halifax had been closed earlier this month, with 71 employees being affected. It is worth noting that the studio was also in the midst of unionising, having formed the first labour union under Ubisoft in North America.
“Over the past 24 months, Ubisoft has undertaken company-wide actions to streamline operations, improve efficiency, and reduce costs,” said Ubisoft in a statement. “As part of this, Ubisoft has made the difficult decision to close its Halifax studio. 71 positions will be affected. We are committed to supporting all impacted team members during this transition with resources, including comprehensive severance packages and additional career assistance.”
The previous year was also a dire one for Ubisoft when taking lay-offs into account, with the company having confirmed in an earnings report back in November that it had laid off 1,500 employees over the preceding 12 months. These lay-offs were noted as part of cost reduction efforts, with the goal of around €200 million reduction in base spending by FY 2026. The company had also confirmed that it was going to seek additional reductions of €100 million by FY 2027.
During the earnings report, CEO Yves Guillemot had also spoken about plans to invest heavily into the use of generative AI, referring to the technology as “a revolution for our industry as the shift to 3D”.
“We are making great strides in applying Gen AI to high-value use cases that bring tangible benefits to our players and teams,” said Guillemot. “It’s as big as a revolution for our industry as the shift to 3D. And we have everything to lead on this front.”
