Ubisoft Toronto has reduced its workforce by 40 roles as part of a broader cost-saving initiative impacting the global game developer. Despite the layoffs, Ubisoft maintains that development on the highly anticipated Splinter Cell remake will continue, alongside ongoing contributions to the Rainbow Six franchise.
The cuts, first reported by MobileSyrup, follow an internal email outlining Ubisoft Toronto’s continued role in co-development projects and service teams. This move is the latest in a series of restructuring efforts announced by Ubisoft last month, aimed at streamlining operations and reducing costs.
“This decision was not taken lightly and does not in any way reflect the talent, dedication, or contributions of the individuals affected,” Ubisoft stated in a statement provided to GamesIndustry.biz. “Our priority now is to support them through this transition with comprehensive severance packages and robust career placement assistance.”
Ubisoft’s Broader Restructuring Plan
The layoffs at Ubisoft Toronto are part of a larger trend within the company. In recent weeks, Ubisoft has closed studios in Stockholm and Halifax, and cancelled several projects, including the Prince of Persia: Sands of Time remake and three unannounced intellectual properties. These cancellations represent a significant shift in Ubisoft’s development strategy, focusing resources on fewer, higher-priority titles.
Further cost-cutting measures were initiated at Ubisoft International in Paris a week after the initial studio closures, with a voluntary redundancy program proposed to reduce the workforce by 200 roles. The company is aiming to achieve approximately €200 million in operating cost savings by the end of the fiscal year 2024-25, according to Stevivor.
The Splinter Cell remake, originally announced in December 2021, has faced development challenges. Despite the layoffs at Ubisoft Toronto – the lead studio on the project – Ubisoft has repeatedly affirmed its commitment to the game. IGN reported that Ubisoft insists the remake is still in development.
Impact on Ubisoft Toronto and Future Projects
Ubisoft Toronto will continue to contribute to other projects, including co-development work on the Rainbow Six series. The studio’s role as a “key contributor to several co-development mandates and service teams” suggests a shift towards supporting existing franchises rather than leading new, large-scale projects. The company’s restructuring reflects a broader trend in the gaming industry, with many developers facing economic pressures and shifting market demands.
The recent layoffs at Ubisoft Toronto, impacting approximately 40 employees, highlight the challenges facing the gaming industry as a whole. GamesIndustry.biz details the comprehensive support being offered to affected employees, including severance packages and career placement assistance.
Looking ahead, Ubisoft’s success will depend on its ability to navigate these challenges and deliver compelling experiences with its core franchises. The continued development of the Splinter Cell remake will be a key indicator of the company’s commitment to innovation and its ability to retain its fanbase.
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