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

March 23, 2026 - 13:53

The iconic studio Red Storm Entertainment will cease developing its own video games, resulting in the loss of 105 jobs. The studio, founded in 1996 and named after a Tom Clancy novel, was instrumental in launching the Rainbow Six and Ghost Recon franchises. It will remain open in a limited capacity, focusing on supporting Ubisoft's Snowdrop game engine and other service roles.

This move is the latest in a prolonged series of cuts for the French publishing giant. Red Storm had recently seen two projects cancelled: a VR Splinter Cell game in 2022 and the planned The Division spin-off, Heartland, in 2024. The studio's shift away from development is part of Ubisoft's broader strategy to reduce fixed costs by €500 million over a five-year period.

The closure of Red Storm's development arm feels like another cut in a relentless wave of restructuring. Since early last year, Ubisoft has shuttered studios in Stockholm, Halifax, and Leamington Spa, while implementing significant job reductions across divisions in Paris, Toronto, Abu Dhabi, and beyond. The company reduced its global headcount by approximately 1,500 people last year alone.

This persistent atmosphere of cuts has created a climate of uncertainty within the company, with some employees describing the experience as a "death by a thousand cuts." While Ubisoft aims to become leaner and more focused, the human cost of this ongoing transformation continues to cast a shadow over the organization and its workforce.