Key Takeaways
- Ubisoft is undergoing its second round of layoffs in 2026, affecting around 55 roles at Massive Entertainment and Ubisoft Stockholm.
- The company has cited a "proposed organizational restructure" as the reason for the layoffs, following a voluntary leave program and completed staffing and appointment process.
- The long-term direction for the studios remains unchanged, with Massive working on projects like The Division 3 and Ubisoft Stockholm developing a new franchise using Ubisoft Scalar cloud computing tech.
- This comes after the shutdown of Ubisoft Halifax, resulting in the loss of 71 jobs, just 16 days after workers at the studio unionized.
Introduction to Ubisoft’s Layoffs
Ubisoft, a leading video game developer and publisher, has announced its second round of layoffs in 2026, barely two weeks into the new year. The company has informed employees at Massive Entertainment and Ubisoft Stockholm of a proposed organizational restructure that could affect around 55 roles across the two Swedish studios. This move is part of the company’s ongoing cost-cutting efforts, which have been underway since last year. In fact, workers at Massive were offered voluntary buyouts late last year, and it seems that this restructure is a continuation of those efforts.
Reasoning Behind the Restructure
According to Ubisoft, the proposed changes are forward-looking and structural, and not related to individual performance, recent deliveries, or the quality of work produced by the teams. The company claims that the long-term direction for the studios remains unchanged, with Massive continuing to work on high-profile projects like The Division 3. Ubisoft Stockholm, on the other hand, is working on a new franchise that is still under wraps, utilizing the studio’s Ubisoft Scalar cloud computing tech. The company has stated that the restructure follows the completion of the Voluntary Leave Program launched during the fall of 2025, as well as a finalized long-term roadmap and completed staffing and appointment process.
Impact on Employees and Studios
The proposed organizational restructure has undoubtedly caused concern among employees at Massive Entertainment and Ubisoft Stockholm. The affected workers will likely face uncertainty about their future with the company, and the prospect of losing their jobs is a significant blow. It’s worth noting that the company has assured employees that the changes are not related to individual performance, which may provide some comfort. However, the reality is that around 55 roles are at risk, and the impact on the studios and the wider gaming community will be significant.
Precedent and Recent Events
This is not the first time Ubisoft has made significant changes to its operations in recent times. Earlier in January, the company announced the shutdown of Ubisoft Halifax, resulting in the loss of 71 jobs. This move was part of the company’s "company-wide actions to streamline operations," according to Ubisoft. Notably, workers at the Halifax studio had unionized just 16 days prior to the announcement, which has raised questions about the timing and motivations behind the decision. While the circumstances surrounding the two events are different, they both highlight the challenges facing the gaming industry and the need for companies like Ubisoft to adapt to changing market conditions.
Conclusion and Future Outlook
In conclusion, Ubisoft’s second round of layoffs in 2026 is a significant development that will have far-reaching consequences for the company, its employees, and the gaming industry as a whole. The proposed organizational restructure at Massive Entertainment and Ubisoft Stockholm is part of the company’s ongoing efforts to streamline operations and reduce costs. While the long-term direction for the studios remains unchanged, the impact on affected workers will be significant. As the gaming industry continues to evolve, it’s likely that we will see more companies making tough decisions to ensure their sustainability and competitiveness in the market.