Ubisoft lays off 55 staff at Massive Entertainment (The Division/Avatar studio). Pivoting back to owned IP after "underperforming" external games. 🎮📉
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Ubisoft is tightening its belt again. The French gaming
giant has announced a new round of layoffs affecting its Swedish subsidiaries, Massive
Entertainment and Ubisoft Stockholm.
This restructuring, described by the company as a
"forward-looking" move, is set to impact approximately 55
employees across the two studios. While the news is disheartening for the
workforce, it highlights a significant strategic shift for the company away
from licensed properties and back to the franchises they own.
Why Is This Happening?
In a statement shared with IGN, Ubisoft confirmed that the
decision came after a "Voluntary Leave Program" initiated in fall
2025. The company claims it now has "clearer visibility into the structure
and capacity required to support the two studios' work."
Crucially, Ubisoft was quick to distance the cuts from
employee performance. "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," a spokesperson stated.
This follows a trend we’ve seen across the gaming industry
recently, where high-budget projects are failing to meet sales targets, forcing
studios to downsize to survive.
The End of the IP Era? Massive Returns to The Division
Massive Entertainment has been the backbone for two of
Ubisoft's recent major releases: Avatar: Frontiers of Pandora and Star
Wars Outlaws. While visually stunning, both games reportedly struggled to
meet commercial expectations.
The studio is now pivoting hard back to its own creation: The
Division.
According to Ubisoft's roadmap, Massive will cement itself
as the "global home" for the franchise. They are currently deep in
production on The Division 3, a sequel fans have been eagerly waiting
for. Additionally, they are working on The Division 2: Survivors, a
survival extraction mode slated for launch in 2026.
By refocusing on internal IP rather than expensive licensed
titles like Star Wars or Avatar, Ubisoft hopes to stabilize its
revenue streams. They will also continue to support their proprietary Snowdrop
engine and Ubisoft Connect platform.
A Turbulent Month for Ubisoft
This latest development is part of a painful month for the
publisher. Just last week, Ubisoft announced the closure of its Halifax
studio in Canada, which resulted in the loss of 71 jobs.
However, amidst the downsizing, Ubisoft is also trying to
expand in specific areas. In October, they launched Vantage Studios, a
new subsidiary backed by Tencent. This studio is tasked with handling the
company's "Big Three" franchises: Assassin's Creed, Far Cry,
and Rainbow Six.
It seems Ubisoft is in the middle of a massive transformation: consolidating teams around their biggest money-makers while letting go of staff elsewhere to cut costs.
#Ubisoft #GamingNews #Layoffs #MassiveEntertainment
#TheDivision #StarWarsOutlaws #GameDev #VideoGames
