Ubisoft Toronto has laid off 40 employees, mere weeks after the company announced a colossal restructuring plan across its studios.
A Ubisoft spokesperson confirmed the news to MobileSyrup earlier today. According to the outlet, the company said the job cuts are part of its larger cost-savings plan. This was announced at the end of last month, and encompasses a large restructuring with the aim of becoming a more “gamer-centric” company.
“This decision was not taken lightly and does not in any way reflect the talent, dedication, or contributions of the individuals affected,” reads a statement provided to MobileSyrup (and then later sent to Game Developer). “Our priority now is to support them through this transition with comprehensive severance packages and robust career placement assistance.”
The company added that development on the Splinter Cell remake is still ongoing.
In an internal email shared with MobileSyrup, the company told employees that Ubisoft Toronto will also remain a “key contributor to several codev mandates and service teams,” including the Alice x Junction venture with Ubisoft Montreal.
Ubisoft’s questionable reorganization has led to strikes
Layoffs and studio closures have been rampant across Ubisoft in recent times. In July of last year, the company made 19 workers redundant, which took place after securing a $1.25 billion investment by Tencent. The gaming conglomerate didn’t stop its acquisitions, nabbing March of Giants developer Amazon Games Montreal in December.
But news hasn’t been that favorable for workers across the company since the start of the year. Ubisoft Halifax was shuttered weeks after its workers voted to unionize. Days later, the company confirmed a wave of redundancies that affected 29 people from its Abu Dhabi studio back in November, which were conducted quietly.
Approximately 1,200 workers, in turn, responded by striking on February 10. Days prior, two union representatives demanded the resignation of Ubisoft CEO Yves Guillemot. Meanwhile, a three-day international strike was called by five unions in France to demand leadership take “responsibility for the consequences of their catastrophic management.”
It seems the company continues to believe in its plan. In its latest fiscal report, the publisher shared more insight about the formation of five internal Creative Houses, one of the steps in the plan alongside the layoffs, studio closures, and a return-to-office mandate. Each of these houses is meant to oversee the development of specific key franchises.
This “group transformation” begins with appointing leadership in March. The company said it will target the “external hires of experienced, respected industry veterans” in an effort to turn around its fortunes.
“We are making progress on the transformation announced in January. The allocation of studios and capabilities across the Creative Houses and Network has now been announced, and key leadership appointments are ongoing, including external hires of experienced, respected industry veterans,” said Ubisoft boss Yves Guillemot.
“This transformation is designed to sharpen focus, accelerate decision-making and elevate our creative ambition in an increasingly selective market. Vantage Studios has been operational since October and we are preparing for the rest of this new operating model to start running in early April.”
Update 2/19: This story has been updated to include a statement from Ubisoft.