Ubisoft shuts down Red Storm studio, lays off over 100 employees

Ubisoft has initiated another round of layoffs at its Red Storm Entertainment studio, with more than 100 employees offered severance packages as part of a wider cost-cutting programme.

According to GamesIndustry.biz, the North Carolina-based studio could see up to 105 roles affected, with the move tied to Ubisoft’s ongoing global savings plan.

The development marks the latest in a series of restructuring steps by the French video game publisher as it seeks to streamline operations and focus resources on core priorities.

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Studio closure and role shifts

Red Storm Entertainment, founded in 1996, is reportedly being wound down, with affected employees offered severance support to facilitate their exit.

Remaining staff are expected to shift away from project-based work and instead focus on Ubisoft’s Snowdrop engine, a proprietary technology platform used across several of its major titles.

The move reflects a broader shift towards centralised technology and shared development capabilities, rather than maintaining multiple standalone studio pipelines.

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Impact of cancelled projects

The restructuring follows the cancellation of key projects previously under development at the studio.

GamesIndustry.biz reported that Red Storm had been working on an untitled Splinter Cell virtual reality title, cancelled in 2022, as well as Tom Clancy’s The Division Heartland, which was discontinued in 2024.

The loss of these projects appears to have reduced the studio’s development pipeline, contributing to the decision to cut roles and reallocate resources.

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Part of wider restructuring across Ubisoft

Ubisoft has been undergoing a sustained period of restructuring, with layoffs affecting several studios over the past two years.

The company has cited the need to improve cost efficiency and optimise resource allocation amid rising development costs and shifting market dynamics.

In earlier internal comments, senior leadership outlined a model where individual studios would retain creative autonomy, while headquarters would act as a central allocator of capital and resources.

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Severance and employee support

Employees impacted by the latest cuts will be offered severance packages, according to the report.

The company has not publicly detailed the full scope of the restructuring or confirmed timelines for the transition at Red Storm Entertainment.

The layoffs come amid broader pressures across the gaming industry, where publishers are balancing rising production costs with uncertain returns on large-scale titles.

Several major developers have announced job cuts in recent months as companies reassess portfolios and prioritise fewer, higher-impact projects.

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What comes next

For Ubisoft, the latest round of layoffs underscores an ongoing effort to reshape its global studio network.

The key challenge now will be whether these cuts translate into a more focused and efficient development model—or signal deeper structural pressures within the business.