Ubisoft's Red Storm Entertainment Ceases Game Development Amid Cost-Cutting Measures

Ubisoft has announced the closure of game development at its subsidiary, Red Storm Entertainment, resulting in the loss of 105 jobs. This decision is part of a broader strategy aimed at reducing fixed costs by €500 million between March 2023 and March 2028. Red Storm, known for its work on the Tom Clancy video game franchise, will continue to operate in a support capacity, focusing on the Snowdrop engine and IT services.

Ubisoft’s death by a thousand cuts – The Game Business Micro

Founded in 1996, Red Storm Entertainment gained prominence for developing the Rainbow Six and Ghost Recon series. The studio's recent projects included a spin-off game in the Tom Clancy’s The Division series, titled Heartland, which was cancelled in 2024, and a VR game in the Splinter Cell series, also cancelled in 2022. The closure of Red Storm follows a series of layoffs and studio closures at Ubisoft, including the shuttering of its Halifax and Stockholm studios earlier in 2025.

Ubisoft’s death by a thousand cuts – The Game Business MicroUbisoft lays off 105 staff at Red Storm, ends game development

Ubisoft's CEO, Yves Guillemot, has faced criticism from employees, particularly after a significant strike involving approximately 1,200 workers on February 10, 2025. This unrest was fueled by ongoing layoffs and dissatisfaction with management's handling of the company's financial challenges. The company has also seen leadership changes, including the appointment of Julien Bares as general manager of Creative Houses, aimed at restructuring its development approach.

Ubisoft lays off 105 staff at Red Storm, ends game development

The layoffs at Red Storm and other studios have sparked dissent among Ubisoft employees, with some engaging in strikes to protest management decisions. Workers have expressed concerns about job security and the company's direction, coining the term "death by a thousand cuts" to describe the ongoing layoffs and studio closures. Union representatives have called for Guillemot's resignation, citing "catastrophic management."

Ubisoft lays off 105 staff at Red Storm, ends game development

Ubisoft has stated that it remains committed to its Tom Clancy franchises and will continue to develop projects across its global network of studios. The company emphasized that the restructuring is necessary to streamline operations and improve efficiency. A source within Ubisoft noted that affected employees would receive severance and career transition assistance.

Ubisoft lays off 105 staff at Red Storm, ends game development

As Ubisoft implements its new Creative House operating model, it aims to centralize development efforts and reduce operational costs. The company plans to focus on fewer, more ambitious projects, which may lead to further changes in staffing and studio operations in the coming years.

Ubisoft lays off 105 staff at Red Storm, ends game development

• “The Creative Network within Ubisoft's new operating model represents an incredible concentration of expertise, craftsmanship, and innovation,” — Thomas Andrén, Managing Director, Massive Entertainment

Ubisoft lays off 105 staff at Red Storm, ends game development

• “Some Ubisoft employees are in open rebellion, as we saw with the strikes that took place last month.” — Anonymous Ubisoft Employee

Ubisoft’s death by a thousand cuts – The Game Business Micro