Ubisoft is still making layoffs after securing $1.25 billion Tencent investment

Ubisoft has laid off 19 workers at Star Trek: Bridge Crew and Tom Clancy’s developer Ubisoft Red Storm.

The French company confirmed the news in a statement to IGN and said the cuts are part of its previously announced restructuring program.

“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,” said the studio.

“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.”

Ubisoft said no other locations have been impacted by the latest layoffs, but refused to comment when IGN asked for more information on Red Storm’s current project slate and overall headcount.

Red Storm is based in Cary, North Carolina and was co-founded by novelist Tom Clancy in 1996. The studio was acquired by Ubisoft in 2000 after finding success with its debut title Tom Clancy’s Rainbow Six in 1998. After being purchased by Ubisoft, Red Storm went on to work on other notable franchises including Tom Clancy’s Ghost Recon, Rocksmith, and Tom Clancy’s The Division.

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According to the Red Storm website, the studio is still hiring and is currently “working to build Ubisoft’s AAA VR future with Assassin’s Creed.”

Ubisoft continues putting workers to the sword after massive Tencent investment

Ubisoft has laid off hundreds of workers and shuttered a litany of studios over the past year.

In January, the company closed its studio in Leamington UK and downsized others in Dusseldorf, Stockholm, and Newcastle. Those cuts were made months after Ubisoft scrapped live-service shooter XDefiant and closed its studios in Osaka and San Francisco.

At the beginning of the year, Ubisoft said it must take “decisive steps” to reshape its business and “drive significant cost reductions.” Just a few months later, Ubisoft established a new subsidiary in partnership with Tencent, which purchased a minority stake in the division for around $1.25 billion.

Ubisoft said the nascent division will “spearhead” development on key franchises such as Assassin’s Creed, Rainbow Six, and Far Cry. 

“We are crystalizing the value of our assets, strengthening our balance sheet, and creating the best conditions for these franchises’ long-term growth and success,” said Ubisoft CEO Yves Guillemot at the time. “With its dedicated and autonomous leadership team, it will focus on transforming these three brands into unique ecosystems.”

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