Ubisoft Toronto has eliminated 40 positions as part of its parent company’s global restructuring and cost-reduction strategy. The layoffs at the Canadian studio, confirmed this week, are a direct component of Ubisoft’s plan to achieve significant financial savings. This workforce reduction impacts one of the company’s key development centers, which is currently leading production on the highly anticipated remake of “Splinter Cell.”
Background of the Restructuring
These job cuts are not an isolated incident. They follow a series of similar actions across Ubisoft’s worldwide operations over the past year. In January, the French gaming giant announced a comprehensive cost-cutting initiative aimed at saving approximately 200 million euros. That plan included the cancellation of several unannounced games, the closure of some offices, and a “final round” of targeted layoffs. The move at the Toronto studio falls within this previously outlined framework.
The company has stated that these difficult decisions are necessary to streamline operations and refocus resources on its most promising projects. The broader video game industry has experienced a wave of layoffs throughout 2023 and 2024, with thousands of developers losing jobs at major publishers and independent studios alike. Economic pressures, post-pandemic market corrections, and consolidation are frequently cited as contributing factors to this trend.
Impact on Ubisoft Toronto
Ubisoft Toronto, established in 2010, has grown into one of the company’s largest studios. It is known for its work on major franchises, including contributions to “Far Cry 6” and “Watch Dogs: Legion.” Its most prominent current project is the remake of the classic stealth-action game “Tom Clancy’s Splinter Cell,” which was announced in 2021. The studio is serving as the lead developer for this title.
The loss of 40 roles represents a notable reduction in the studio’s workforce. While Ubisoft has not specified which departments or projects are most affected, such layoffs typically involve a range of positions across development, administrative, and support teams. The company has emphasized its commitment to supporting impacted employees through this transition, which may include severance packages and career assistance services.
Industry and Community Reaction
News of the layoffs has been met with concern from industry observers and the gaming community. The Toronto studio’s work on the “Splinter Cell” remake has generated considerable anticipation, leading to questions about the project’s timeline and development resources following the staff reductions. Employee advocacy groups within the gaming sector have repeatedly called for greater stability and worker protections in an industry known for project-based hiring cycles and crunch periods.
Ubisoft has not indicated that the “Splinter Cell” remake or any other specific project has been canceled as a result of these cuts. The standard corporate communication in such situations is to affirm that the company remains dedicated to its core projects and that the restructuring is designed to strengthen its long-term creative and financial outlook.
Looking Ahead
The immediate next steps involve the formal transition for the 40 departing employees. Ubisoft is expected to continue its broader restructuring plan, which may involve further operational adjustments across its global studio network. The company’s leadership will likely provide updates on the financial impact of these savings during its next quarterly earnings report. For Ubisoft Toronto, the focus will now be on reorganizing its remaining team to continue development on its announced projects, with the industry and fans closely watching for any updates on the progress of the “Splinter Cell” remake.
Source: GamesIndustry.biz
