Ubisoft Toronto Reduces Workforce Amid Company Restructuring

Ubisoft Toronto has reduced its workforce by 40 positions as part of the company's global cost-saving initiative. Despite these layoffs, development on the Splinter Cell remake and contributions to other projects, such as Rainbow Six, will proceed without interruption.

"This decision was not taken lightly and does not in any way reflect the talent, dedication, or contributions of the individuals affected," Ubisoft stated. "Our priority now is to support them through this transition with comprehensive severance packages and robust career placement assistance."

The layoffs were initially reported by MobileSyrup, which cited an internal email indicating that Ubisoft Toronto will continue to play a significant role in several co-development projects and service teams.

This move is part of Ubisoft's broader restructuring plan announced last month, which includes the closure of studios in Stockholm and Halifax, the cancellation of six games—including the Prince of Persia: The Sands of Time remake—and the delay of seven other titles. The company aims to achieve €500 million in fixed cost savings by March 2028 through these measures.

Ubisoft's restructuring efforts are driven by the increasingly competitive market for AAA games, with rising development costs and challenges in creating successful new brands. The company is focusing on open-world games and 'Games as a Service' titles, supported by investments in player-facing generative AI.

"The triple-A industry has become persistently more selective and competitive with rising development costs and greater challenges in creating brands," said Ubisoft's founder and chief executive, Yves Guillemot. "However, successful triple-A games have more financial potential than ever."

As part of its organizational changes, Ubisoft is dividing its operations into five creative divisions organized by genre, each responsible for the development and marketing of its assigned games. This restructuring is intended to sharpen focus and improve efficiency following years of disappointing releases and weak financial results.

The company has also implemented a mandatory five-day in-office work policy, supplemented by yearly remote-work allowances, as part of its efforts to streamline operations and adapt to evolving market conditions.

Ubisoft plans to provide additional information on its restructuring efforts and future plans in an event scheduled for February 12, 2026.