Ubisoft continues with workforce reductions following the acquisition of $1.25 billion investment from Tencent.
In a recent development, Ubisoft Red Storm, the acclaimed video game studio co-founded by novelist Tom Clancy in 1996, has announced layoffs affecting 19 of its employees. This move is part of Ubisoft's $110 million cost reduction plan over the next two years.
The layoffs have primarily impacted employees working on Rainbow Six Siege and internal Snowdrop engine improvement projects. As a result, the studio's current headcount stands at approximately 160 employees, down from a peak of over 200 at its height.
Ubisoft Red Storm, based in Cary, North Carolina, has seen several cancellations in recent years, including The Division Heartland and a Splinter Cell VR game. They also helped with the development of XDefiant, which was recently shut down. At present, the studio's focus is mainly on supporting Rainbow Six Siege and making internal tech improvements rather than launching new major titles.
In a positive move, Ubisoft Red Storm is still hiring and is working to build Ubisoft's AAA VR future with Assassin's Creed. The studio has stated that the decision to eliminate these roles was necessary due to operational priorities.
Ubisoft's strategic operational priorities are evident in these layoffs, as the company aims to crystalize the value of its assets, strengthen its balance sheet, and create the best conditions for long-term growth and success of its key franchises such as Assassin's Creed, Rainbow Six, and Far Cry.
This restructuring is part of Ubisoft's broader reorganisation programme, announced previously. Notably, Ubisoft has established a new subsidiary in partnership with Tencent, which purchased a minority stake in the division for around $1.25 billion. Ubisoft remains committed to supporting the affected employees with comprehensive severance packages, extended health-care benefits, and career transition assistance.
It is worth mentioning that no other locations have been impacted by the latest layoffs at Ubisoft. After being acquired by Ubisoft in 2000, Red Storm Entertainment went on to work on other notable franchises including Tom Clancy's Ghost Recon, Rocksmith, and Tom Clancy's The Division.
Ubisoft Red Storm's new subsidiary will spearhead development on these key franchises, transforming them into unique ecosystems. The company's vision is to create the best conditions for long-term growth and success, ensuring a bright future for these iconic game series.
- Despite the recent layoffs at Ubisoft Red Storm, the company is still hiring, focusing on building Ubisoft's AAA VR future with Assassin's Creed and technology improvements.
- Ubisoft's strategic operational priorities include crystallizing the value of its assets, strengthening its balance sheet, and creating the best conditions for long-term growth and success of its key franchises such as Assassin's Creed, Rainbow Six, and Far Cry, which includes technology and business developments in this realm.
