Ubisoft hits another studio with layoffs, 100+ employees offered severance packages

Ubisoft is reportedly making another round of layoffs, with GamesIndustry.biz reporting that a source at Ubisoft has informed the publication that the North Carolina studio Red Storm Entertainment will be closing its doors.

According to a recent report, Red Storm Entertainment, a studio founded in 1996, will let go as many as 105 employees, and those that remain will stop working on their current project and begin focusing on the Snowdrop engine. GamesIndustry.biz reports that Red Storm Entertainment has been working on an untitled Splinter Cell VR game, which Ubisoft cancelled in 2022, and on Tom Clancy's The Division Heartland, which was also cancelled in 2024.

As for the recent layoffs, the Ubisoft source said that Red Storm's cuts were part of Ubisoft's global savings plan, and that any affected employees will be offered severance packages to assist with their departure.

Furthermore, Ubisoft hit Red Storm with layoffs last July, and in August 2024, with SVP of Studio Operations Marie-Sophie de Waubert saying in January, "Each Creative House will have allocated resources, and they will have the means to define and to develop their roadmap. HQ will act as a global allocator in terms of capital and resource, and the Core Services and the Creative Network are really the two supportive structures to help the Creative Houses to make their games."