Ubisoft has announced its second round of layoffs in 2026, proposing to cut approximately 55 positions across its Swedish studios Massive Entertainment and Ubisoft Stockholm.
The restructuring comes just one week after the company shuttered Ubisoft Halifax, which resulted in 71 job losses. The Halifax closure occurred two weeks after the studio voted to unionize, though Ubisoft maintains the decision was unrelated to the unionization effort.
The Restructuring Details
Ubisoft informed employees at both Swedish studios about the proposed organizational changes on January 13, 2026. The company states the restructure follows the completion of a voluntary leave program launched in fall 2025, which apparently did not achieve the desired headcount reduction.
According to Ubisoft’s statement, the changes are “forward-looking and structural” and not related to individual performance or work quality. The company emphasized that the long-term direction for both studios remains unchanged.
Studios and Projects Affected
Massive Entertainment, based in Malmö, is known for developing major titles including The Division series, Star Wars Outlaws, and Avatar: Frontiers of Pandora. The studio is also responsible for the Snowdrop engine and continues development on The Division 3, which Ubisoft says will remain “a matter of priority.”
Ubisoft Stockholm is working on an unannounced innovative technology project utilizing the company’s Ubisoft Scalar cloud computing platform.
Part of Broader Cost-Cutting Strategy
These layoffs represent part of Ubisoft’s ongoing efforts to streamline operations and reduce costs. The company has been implementing cost-reduction measures across multiple studios as it navigates recent business challenges despite the success of Assassin’s Creed Shadows.
Affected employees are being informed directly and will receive support in accordance with local regulations as the company begins focusing on individual agreements.