Ubisoft the Red Storm development team is currently undergoing layoffs that will completely end their ability to work on 10 upcoming games. This decision by Ubisoft follows a series of internal changes designed to save money across the company. Specifically, 105 employees are losing their positions as the office is forced to move away from game development entirely. While Ubisoft has dealt with a lot of turmoil lately, this latest move marks a significant change in how this studio will operate from now on. The move appears to be part of a much larger plan to reorganize how the company builds its greatest hits.
Before these recent changes, Red Storm had a long history in the gaming industry. It was founded in North Carolina in 1996, with the famous author Tom Clancy as one of its co-founders. For nearly thirty years, the team was synonymous with tactical shooters and high-stakes military action. After being purchased by its current parent company in 2000, it became the primary engine behind some of the most successful stealth and combat franchises in gaming history. The group's early years were spent perfecting the mechanics of team-based combat, leading to a golden era of tactical experiences. Over time, however, the team's role began to change, from leading their own massive projects to providing essential support for other major titles worldwide.
Ubisoft announces studio closure and layoffs
Ubisoft is announcing the closure of one of its studios and layoffs at other locations as layoffs continue to plague the games industry.
A look at the projects lost to layoffs at Red Storm
The true extent of the studio's involvement in the company's lineup has only recently come to light following the news of the cuts. According to Insider Gaming, the team was actually juggling at least 10 different projects when it was told to stop making games. It wasn't just small tasks. The studio helped build the seasonal content for Rainbow Six Siege and worked on the next big one Ghost Recon title, as currently called Project OVR. The long-awaited was also on the work list Beyond Good & Evil 2 and the ongoing development of Brawlhalla. It also handled a smaller one Rainbow Six project called Slice and dice and was in the early stages of planning what Division 3 could look eventually. Other tasks involved creating sounds for Division 2help with a new version of Watch Dogsand works with Splinter cell series. One last project was so early in development that it hadn't even been given a public name yet.
This sudden suspension of game development comes after a series of difficult years and high-profile project failures for the North Carolina team. Red Storm had already dealt with previous rounds of layoffs in both 2024 and 2025 as the company tried to find its footing. Recently, the studio had focused heavily on virtual reality, creating Assassin's Creed Nexus VR and leads the way on titles such as Star Trek: Bridge Crew and Werewolves within. But many of their highest hopes were dashed when key projects were shelved. A VR-focused one Splinter cell the game was stopped in 2022, and the free-to-play shooter Division Heartland was officially scrapped in 2024 after facing several delays and development hurdles. These cancellations left the team in a vulnerable position, making Red Storm a prime target for the company's broader “global savings plan.”
The studio isn't closing its doors entirely, but its new purpose will be a far cry from its days of creating legendary shooters. The remaining staff will now act as a support hub, focusing on technical assistance and IT services rather than creative game design. A big part of their new job will be maintaining Ubisoft's Snowdrop engine, which is the powerful technology used to run games like The Division and Star Wars Outlaws. This pivot is part of a larger reset where the company is splitting itself into five “creative houses” that will handle all the key tasks of creating games. All studios outside of these five main pillars, like the North Carolina team, are now relegated to the “Creative Network,” a support structure meant to help the majors complete their roadmaps.
Fit the 9 games into the grid.
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Fit the 9 games into the grid.
These redundancies are just part of a financial goal to cut costs by a staggering €200m across the organisation. The year 2026 has already been incredibly tough for the company's employees, with the staff at Massive Entertainment and the team behind it Splinter cell remake also faces job losses. Seven games have been canceled recently, incl Prince of Persia: The Sands of Time remake, like had been in development for several years. In addition to the studio closings, the publisher has also faced internal tensions over a new policy requiring all employees to return to the office full-time, which sparked a strike among workers earlier this year. Although the company has promised to give departing employees generous severance pay and support to help them find new roles, the mood remains tense. Even more cost-cutting measures at Ubisoft are expected to be announced in the near future as the publisher continues to tighten its belt and focus solely on its biggest, most profitable brands.
- Date founded
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March 28, 1986
- Head office
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Saint Mande, France
- CEO
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Yves Guillemot
Source: Insider Gaming
