Ubisoft, a prominent video game publisher, has recently confirmed another round of layoffs that have impacted its San Francisco and Cary studios, with the latter being more commonly known as Red Storm Entertainment. This marks the second wave of job cuts to hit the company this year, although these layoffs are the first to specifically affect these two studios.
The layoffs, which occurred on August 16, resulted in a total of 45 staff members being let go between Ubisoft San Francisco and Red Storm Entertainment. While the exact distribution of layoffs between the two studios has not been officially disclosed, it appears that the majority of the cuts have affected Red Storm based on social media posts.
In a statement provided to Bloomberg, Ubisoft explained that the decision to lay off employees was a difficult but necessary one in order to align the studios’ organizations with their future business and development goals. The affected employees were informed that their positions were being terminated immediately, leaving them to seek new employment opportunities despite Ubisoft offering severance packages and career assistance.
Ubisoft San Francisco is known for its work on the free-to-play multiplayer arena shooter XDefiant and the Rocksmith franchise. On the other hand, Red Storm Entertainment was behind the development of the canceled free-to-play shooter The Division Heartland, as well as previous work on the Ghost Recon and Rainbow Six franchises. The layoffs have impacted a variety of roles within the studios, including Creative Directors, game designers, and marketing personnel.
This round of layoffs is the second to hit Ubisoft in 2024, following a previous round of job cuts that affected 45 staff members in the Global Publishing central and APAC structures. In the previous year, Ubisoft also implemented layoffs that impacted customer service roles at its North Carolina and Newcastle studios, as well as its community and social media teams, Ubisoft Montreal, and special effects studio Hybride. Additionally, Ubisoft London was completely shut down.
During its full-year financial results presentation in May, Ubisoft disclosed that it had reduced its total headcount by 1700 roles since 2022, with approximately 1,000 of those being staff cuts. The company’s restructuring efforts reflect its ongoing commitment to adapting to the evolving landscape of the video game industry and ensuring its long-term sustainability.
