Ubisoft’s cost-cutting bloodbath continues into 2026 with another 55 jobs on the chopping block at Massive Entertainment – developers of The Division series and Star Wars Outlaws – alongside Ubisoft Stockholm. The announcement comes barely a week after Ubisoft abruptly shuttered its newly-unionized Halifax studio, eliminating 71 positions and prompting accusations of union-busting from affected workers.
The latest cuts follow a failed voluntary redundancy program from fall 2025 that didn’t reduce headcount enough for Ubisoft’s aggressive restructuring targets. Massive Entertainment, acquired by Ubisoft in 2010, faces particular scrutiny since the studio remains deep into The Division 3 development while supporting live service content for The Division 2. Ubisoft insists projects continue unaffected despite the turmoil.
Timeline of Ubisoft’s 2026 Layoff Wave
- January 6: Ubisoft Halifax closes days after union vote (71 jobs lost)
- January 13: Massive Entertainment + Stockholm restructuring announced (55 jobs targeted)
- Ongoing: RedLynx restructuring from late 2025 continues
This marks Ubisoft’s second major layoff announcement in just 13 days, following years of workforce reduction. CEO Yves Guillemot promised in 2024 to “restore creativity and innovation” through significant headcount cuts, a strategy now hitting core development teams.
Massive Entertainment Under Fire
Massive’s recent track record makes the layoffs particularly painful. Star Wars Outlaws (2024) underperformed commercially despite critical praise for its open-world design. Avatar: Frontiers of Pandora delivered strong visuals but mixed reception. The studio’s Snowdrop engine powers major Ubisoft franchises, making their stability crucial.
| Studio | Key Projects | Jobs Impacted | Date |
|---|---|---|---|
| Ubisoft Halifax | Assassin’s Creed Rebellion, Rainbow Six Mobile | 71 | Jan 6 |
| Massive Entertainment | The Division 3, Star Wars Outlaws, Avatar | ~40 | Jan 13 |
| Ubisoft Stockholm | Various support roles | ~15 | Jan 13 |
Ubisoft claims The Division 3 remains on track alongside new Division 2 content and a potential Division 1 definitive edition. Layoffs reportedly target non-essential roles after completing staffing reviews and long-term roadmaps.
Halifax Union Controversy
The Halifax closure sparked outrage after 61 of 71 employees voted to unionize in late December 2025. Just two weeks later, Ubisoft shuttered the 15-year-old mobile studio despite ongoing Assassin’s Creed Rebellion work. Labor groups immediately filed complaints suggesting retaliatory closure.
Ubisoft’s statement blamed “two years of company-wide streamlining” rather than union activity. Affected workers receive severance and career support, but the timing raises serious questions about labor practices at the French publisher.
Ubisoft’s Broader Restructuring
These cuts continue a painful transformation:
- 2024: Major layoffs across multiple studios
- October 2025: Voluntary programs at Massive and others
- December 2025: RedLynx restructuring
- January 2026: Halifax closure + Swedish cuts
Tencent’s $1B+ investment provides financial backing, but Guillemot demands profitability. Upcoming releases include Assassin’s Creed 4 remakes, Prince of Persia: Sands of Time remake, and Division 3 – all carry heightened commercial expectations.
FAQs
Why is Ubisoft laying off so many workers?
CEO Yves Guillemot pursues aggressive cost-cutting to restore profitability. Failed voluntary programs forced direct layoffs. Tencent investment demands results, not excuses.
Is The Division 3 canceled?
No – Ubisoft confirms Massive continues Division 3 alongside Division 2 live service and potential Division 1 re-release. Layoffs target support roles, not core development.
Was Halifax closed because of unionization?
Ubisoft denies connection, citing two-year cost-cutting strategy. Timing (two weeks post-union vote) fuels retaliation accusations. Labor groups pursue legal action.
How many total jobs lost at Ubisoft in 2026?
Confirmed: 71 (Halifax) + 55 proposed (Sweden) = 126. Additional RedLynx cuts continue from 2025. Expect more as restructuring rolls out.
What happens to affected developers?
Severance packages, career transition support, and local compliance. Swedish studios prioritize individual agreements before formal redundancies.
Will this impact upcoming games?
Ubisoft claims no project delays. Focus shifts to fewer, larger titles versus broad mobile/support work. Division 3 explicitly confirmed safe.
Is Ubisoft financially stable?
Tencent investment stabilized balance sheet. Layoffs represent painful path to profitability, not existential crisis. 2026 nostalgia releases carry high expectations.
Industry Bloodbath Continues
Ubisoft joins Microsoft, Sony, and EA in 2026’s grim layoff trend. Massive Entertainment’s survival matters – Snowdrop engine and Division IP represent significant assets. Halifax’s rapid closure post-unionization sends chilling message to workers everywhere.
Division 3 success becomes make-or-break for Massive. Ubisoft bets nostalgia (Assassin’s Creed remakes, Prince of Persia) offsets live service struggles. Developers pay the price for corporate strategy shifts. 2026 gaming starts with pink slips, not promise.