“Global Cost-Saving Efforts” – Ubisoft Follows Microsoft’s Example With Heavy Job Cutting

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As a devoted admirer, I’m disheartened to share that the recent round of downsizing has affected Red Storm Entertainment, an esteemed Ubisoft studio renowned globally for its exceptional contributions to the Tom Clancy universe, specifically masterpieces like Rainbow Six Siege and Ghost Recon.

Layoffs Hit Red Storm Entertainment, The Studio Behind Rainbow Six Siege

Based on an IGN report, Red Storm Entertainment, a studio owned by Ubisoft (a French publisher), has let go of 19 employees. This action is due to ongoing restructuring and cost-cutting measures aimed at improving efficiency worldwide. Ubisoft expressed regret over the decision but emphasized that it was necessary given changes in their operational focus.

“Today, Ubisoft made the decision to eliminate 19 roles at Red Storm Entertainment. This step is part of our ongoing, targeted restructuring and global cost-saving efforts, and reflects the needs on the studio’s projects. While this was not an easy decision, it was a necessary one given our operational priorities. We remain committed to supporting those affected with comprehensive severance packages, extended health-care benefits, and career transition assistance. We deeply appreciate their hard work and the impact they’ve had on Ubisoft.”

As a dedicated fan of Red Storm Entertainment, I can’t help but feel a sense of unease about the recent news that Ubisoft has decided to close its doors. Although Ubisoft has emphasized that this isn’t indicative of broader layoffs across their other studios, it certainly casts a shadow over a studio that has undergone such significant transformation in recent years.

Founded back in 1996, Red Storm gained a reputation for delivering some of Ubisoft’s most impactful titles, particularly those bearing the Tom Clancy brand. However, in more recent times, the studio has shifted its focus to support roles and virtual reality (VR) development. A prime example of this is their most recent project, Assassin’s Creed Nexus VR, which brought the beloved franchise into virtual reality on Meta Quest devices.

Apart from Red Storm’s well-known projects, they have also lent a hand to XDefiant, unfortunately terminated earlier this year. Furthermore, two other significant productions were abandoned altogether: a virtual reality game based on Splinter Cell, which was canceled in 2022, and Heartland, a free-to-play title set in The Division universe, initially delayed several times before being dropped in 2024.

At Red Storm, job cuts are happening when Ubisoft is struggling to adapt to changing market trends, delays in releases, and increasing demands from shareholders. Additionally, the company has formed alliances with Tencent to secure its finances, but it seems these measures couldn’t prevent their development teams from undergoing reorganization.

Echoes Of Microsoft’s Measures

Ubisoft’s move mirrors Microsoft’s recent cost-cutting steps that involved job reductions at Turn 10 Studios, the creators of the popular Forza Motorsport franchise. As explained in our previous piece, this reduction in workforce essentially disbanded the team maintaining the long-running racing series, which is significant given that Forza Horizon and Forza Motorsport are key titles in Xbox’s prestigious lineup.

The pattern observed in both instances underscores a widespread change among prominent publishers: they are reallocating resources, which frequently means moving away from established studios, potentially leading to the sidelining of experienced teams with cumulative decades of expertise. Remarkably similar situations are seen in Red Storm and Turn 10, both having earned their fame by creating genre-defining games, yet currently facing consequences due to broader corporate plans designed to cut costs.

A Dangerous Trend In The Gaming Industry

The video game sector, once known for its continuous expansion, seems to be experiencing a tough period of readjustment now. Over the past two years, both big and small studios have been confronted with reorganizations, job cuts, or even shutdowns. Experts attribute this trend to escalating production costs, fiercer competition, and shifting player preferences – notably towards free-to-play and live service games, which can be uncertain in terms of long-term earnings due to their unpredictable profitability.

Although Ubisoft claims that the reductions at Red Storm are unique and based on individual project requirements, there’s a growing concern that this could indicate wider cost-cutting measures throughout their extensive collection of projects. There’s optimism that enhancements to ongoing games like Rainbow Six Siege, which has just undergone a significant overhaul, might help boost earnings. However, with the increasing number of shelved projects and closed studios, it’s evident that Ubisoft is sailing through turbulent seas.

As a dedicated fan, I’m glad to see that Ubisoft is extending a helping hand to their affected workforce by providing severance pay and job search assistance. Yet, it’s no secret that the current job market is brimming with talent from similar situations, which might make it challenging for many to swiftly secure new opportunities.

What’s Next for Red Storm and Ubisoft?

The future of Red Storm Studios is shrouded in uncertainty, as they have been instrumental in Ubisoft’s virtual reality (VR) endeavors. The release of Assassin’s Creed Nexus VR was a notable achievement, but it remains unclear what other VR projects are currently being worked on. Simultaneously, Ubisoft appears to be centering its strategy around consolidating resources, intensifying efforts on established intellectual properties, and proceeding with caution when venturing into new areas such as VR and mobile platforms.

It is undeniable that these choices significantly affect more than just financial aspects; they are reshaping the creative forces behind the cherished game series. As Ubisoft mirrors Microsoft’s actions, a stark truth emerges: Even esteemed and celebrated studios aren’t exempt from the harsh economic decisions in this industry. The latest developments have shown that even past triumphs don’t safeguard against the effects of worldwide cost-reduction strategies.

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2025-07-10 17:10