Ubisoft Entertainment SA‘s (OTC:UBSFF) ongoing restructuring efforts have resulted in another round of layoffs, this time impacting staff across two of its U.S.-based studios.

The French video game publisher, known for blockbuster franchises like Assassin’s Creed and Tom Clancy’s series, has dismissed a total of 45 employees from its San Francisco studio and Red Storm Entertainment in Cary, North Carolina.

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"Yesterday, Ubisoft San Francisco and Red Storm Entertainment informed their teams of a restructuring that resulted in 45 employees leaving Ubisoft,” Ubisoft spokesperson told IGN.

“This difficult yet necessary decision was made to align these studios’ organizations with their future business and development objectives. We are committed to providing comprehensive support to those affected, including severance and career assistance, and we thank them for their many contributions to Ubisoft."

A Year Marked By Reductions

The layoffs at Ubisoft San Francisco and Red Storm Entertainment follow earlier cuts in May 2023 and November 2023.

In those instances, Ubisoft trimmed its VFX and IT teams, as well as its customer service department, with 60 employees affected in the latter case.

The publisher also eliminated 33 positions at its Toronto studio in July 2024 and dismissed another 45 employees from its global publishing and Asia-Pacific teams in April 2024.

Impact On Studio Operations

For Red Storm Entertainment, the latest cuts are particularly disheartening as they follow the cancellation of the mobile title Tom Clancy’s The Division: Heartland in May.

This cancellation was announced alongside Ubisoft's financial results, which, despite the setbacks, showed record net bookings and an increase in net sales for 2023.

Ubisoft's layoffs are part of a larger trend in the gaming industry, where companies are increasingly resorting to restructuring as they adapt to market changes and financial pressures.

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