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.

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