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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Illustration of striking Ubisoft workers protesting redundancies, game cancellations, and stock plunge outside Paris studio.
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Ubisoft restructuring sparks strikes and game cancellations

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Ubisoft's recent company-wide reset has led to the cancellation of six games, studio closures, and a proposed 200 voluntary redundancies in France, prompting unions to vote for strikes. The move includes the scrapping of the long-delayed Prince of Persia: The Sands of Time remake and a price increase for the Just Dance+ service. Shares fell 34 percent, marking the company's lowest value in 15 years.

Ubisoft has revealed plans to cut 55 jobs at its Massive Entertainment and Ubisoft Stockholm studios as part of ongoing restructuring efforts. The move follows a voluntary leave program launched in fall 2025 and aims to align staffing with long-term project needs. Despite the cuts, development on key titles like The Division 3 continues uninterrupted.

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Ubisoft has acquired the Amazon Games Montreal studio and the rights to its upcoming MOBA title, March of Giants, following Amazon's significant cutbacks in its gaming division. The deal includes key developers like former Rainbow Six Siege creative director Xavier Marquis and brings the team back to Ubisoft. Amazon will provide marketing support for the game on Twitch.

Meta has closed Twisted Pixel Games, Sanzaru Games, and Armature Studio as part of layoffs in its Reality Labs division. The move supports a shift toward wearables and AI, reducing first-party VR development for Quest headsets. Developers confirmed the full shutdowns on social media.

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Meta has shuttered three VR studios and laid off over 1,000 employees from its Reality Labs division as part of a shift away from metaverse investments toward AI-powered wearables. The closures include Armature, Sanzaru, and Twisted Pixel, with the popular Supernatural app ceasing new content updates. Company leaders emphasize a continued but leaner focus on VR through third-party support.

Obsidian Entertainment's 2025 releases Avowed and The Outer Worlds 2 received positive reviews but fell short of sales expectations, while Grounded 2 proved a major success. Studio head Feargus Urquhart described the RPGs' results as disappointing yet instructional, prompting reflections on development cycles. The company now aims for shorter timelines and has no plans for The Outer Worlds 3.

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Former Bethesda Game Studios lead Kurt Kuhlmann, who departed after over 20 years, has raised alarms about the studio's direction in a recent interview. This follows Todd Howard's December update confirming most of the team is on The Elder Scrolls 6, which will precede Fallout 5. Kuhlmann highlighted cultural shifts post-Skyrim success, growing bureaucracy, and a talent exodus, casting doubts on future projects.

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