Ubisoft proposes layoffs at Swedish studios Massive Entertainment and Stockholm

Ubisoft has proposed cutting around 55 jobs at its Swedish studios, Massive Entertainment and Ubisoft Stockholm, as part of ongoing restructuring efforts. This follows voluntary buyouts offered last year and comes amid broader cost-cutting measures at the company. The changes aim to align staffing with long-term project needs without affecting individual performance.

Ubisoft announced on January 13, 2026, a proposed organizational restructure that could eliminate approximately 55 roles across its two Swedish studios: Massive Entertainment and Ubisoft Stockholm. This marks the company's second round of layoffs early in the year, building on a Voluntary Leave Program launched in the fall of 2025.

Massive Entertainment, known for developing the The Division series, Star Wars Outlaws, and Avatar: Frontiers of Pandora, will continue work on projects including The Division 3. Ubisoft Stockholm is focusing on a new, undisclosed franchise that utilizes the studio's Ubisoft Scalar cloud computing technology.

In a statement to IGN, Ubisoft explained: "This restructure follows the completion of the Voluntary Leave Program launched during the fall of 2025, a finalized long-term roadmap and a completed staffing and appointment process, which together have provided clearer visibility into the structure and capacity required to support the two studios’ work and sustainably over time. These proposed changes are forward-looking and structural, they are not related to individual performance, recent deliveries or the quality of the work produced by the teams."

The company emphasized that the long-term direction for both studios remains unchanged. This follows the closure of Ubisoft Halifax earlier in January, which resulted in 71 job losses just 16 days after workers there unionized. Ubisoft described that decision as part of broader efforts to streamline operations.

These moves reflect ongoing cost-cutting at Ubisoft amid challenges in the gaming industry, though the firm insists the restructures are aimed at sustainability rather than reacting to specific project outcomes.

Related Articles

News illustration showing the impact of Xbox layoffs with employees in an office packing boxes.
Image generated by AI

Xbox announces 3200 layoffs in major restructuring

Reported by AI Image generated by AI

Microsoft cut 3200 jobs at Xbox on July 6 as part of the largest restructuring in the division's history. Half the reductions took effect immediately, with the rest scheduled through June 2027. Four studios are leaving the company through spin-offs or sales.

Ubisoft plans to shutter two studios and restructure another, resulting in about 380 job losses. The moves mark the company's third round of layoffs this year.

Reported by AI

Developers at Ubisoft Barcelona have begun a strike in response to planned job cuts at the studio. The action, organized by a Spanish union, involves staff leaving work on specific afternoons through mid-July.

Microsoft is reportedly considering the closure of Arkane Studios along with four other studios as part of a broad reset of its Xbox division. The changes could also result in the cancellation of the Marvel's Blade game.

Reported by AI

Former Nintendo of America president Reggie Fils-Aimé described recent mass layoffs at gaming companies as a 'red flag' for senior developers considering job offers. Speaking at NYU, he urged caution with firms that have cut jobs in the past four to six years. Fils-Aimé suggested such actions indicate a willingness to repeat them.

Xbox unions represented by the Communications Workers of America are pushing for formal negotiations on potential layoffs before any announcements occur. External vendor contracts have already been terminated ahead of the company's fiscal year end. Employees at several studios remain uncertain about their future.

Reported by AI

Xbox CEO Asha Sharma and Xbox Game Studios Head Matt Booty emailed employees on June 10 with a blunt message that current operations cannot continue. The note outlined five harsh realities facing the division, including low profits and rising costs. Bloomberg separately reported that major layoffs are planned for next month.

 

 

 

This website uses cookies

We use cookies for analytics to improve our site. Read our privacy policy for more information.
Decline