Ubisoft Cuts More Jobs Amid $1.25bn Tencent Investment

Ubisoft, the French gaming powerhouse known for franchises like Assassin’s Creed and Far Cry, has announced another cycle of layoffs affecting its Red Storm studio and publishing teams. Despite an ambitious $1.25 billion investment from Tencent and the launch of a flagship subsidiary, the company continues to shed jobs as part of an extensive restructuring program. These painful measures come amidst sluggish sales, canceled titles, and mounting industry competition, casting doubt over Ubisoft’s long-term creative stability and workforce morale.

Ubisoft’s most recent layoffs saw 19 positions cut at its Red Storm Entertainment studio, based in North Carolina and known for Tom Clancy titles like Ghost Recon. The move follows internal realignment and global cost-saving efforts, as Red Storm’s productivity declined after supporting projects that failed to meet commercial expectations. Ubisoft also trimmed nine roles from its publishing team to streamline operations for the new Tencent-backed division.

The broader picture is even starker: between November 2023 and January 2025, Ubisoft reduced its workforce by almost 700 people through multiple rounds of layoffs. Major studio closures, including in San Francisco, Osaka, and Leamington, resulted from the failure of live-service projects like XDefiant, while several European studios saw significant downsizing amid disappointing sales of titles such as Star Wars Outlaws.

These restructuring efforts coincide with Tencent’s $1.25 billion investment, which enabled Ubisoft to spin off its top IPs into a new subsidiary focused on flagship brands. The Tencent deal aims to create “evergreen” multiplatform ecosystems and strengthen Ubisoft’s balance sheet, but it hasn’t insulated creative staff or operations from cuts. Rising development costs, stiff competition, and unpredictable player trends continue to challenge Ubisoft’s core business, forcing hard choices as the publisher seeks short-term profits and long-term sustainability.

Employee morale and industry stability remain at risk, as analysts warn that ongoing layoffs could sap Ubisoft’s creative energy and talent pipeline. The company insists that affected workers receive severance and assistance, but the relentless pace of restructuring underscores the fragility facing even gaming’s biggest names as the sector undergoes transformation.