Ubisoft has initiated another round of layoffs at its studio Red Storm Entertainment, as part of a broader push to reduce costs and streamline operations globally. More than 100 employees have reportedly been impacted, with severance packages offered as the company reshapes its development structure.
The North Carolina-based studio is facing a significant scale-down, with indications that as many as 105 roles could be affected. The move is part of Ubisoft’s ongoing efforts to optimise resources and focus on fewer, high-priority initiatives.
Founded in 1996, Red Storm Entertainment is now being repositioned. While a large portion of its workforce is exiting, remaining employees are expected to transition away from individual game development. Instead, they will contribute to Ubisoft’s proprietary Snowdrop Engine, which powers several of the company’s major titles. This reflects a shift towards centralised technology development rather than maintaining multiple independent production pipelines.
The restructuring follows a series of project cancellations that have impacted the studio’s pipeline. Among them were a virtual reality (VR) title linked to the Splinter Cell franchise and Tom Clancy’s The Division Heartland, both of which were discontinued in recent years. The loss of these projects appears to have reduced the need for a full-scale development team at the studio.
Ubisoft has been undergoing continuous restructuring across its global network. Rising development costs and shifting player demand have pushed the company to reassess how resources are allocated. The strategy now leans towards central oversight, while studios retain limited creative autonomy.
Employees affected by the layoffs are being offered exit support, though the company has not shared detailed timelines for the transition. The latest cuts highlight the broader pressures facing the gaming industry, where companies are increasingly focusing on efficiency and prioritising fewer, high-impact releases.
