**Ubisoft Announces Layoffs Amid Cost-Cutting Measures**
Ubisoft has confirmed plans to lay off 55 employees from its studios in Malmö, Sweden—home to Tom Clancy’s The Division developers, Massive, and the cloud computing studio, Ubisoft Stockholm. This decision is part of a broader cost-cutting initiative aimed at restructuring the company. The layoffs come after an earlier voluntary redundancy scheme at Massive did not achieve the expected participation levels.
In a statement provided to IGN, Ubisoft explained that the restructuring follows the completion of a Voluntary Leave Program initiated in the fall of 2025, which was part of a finalized long-term strategic roadmap. This process has aimed to clarify the workforce structure and capacity necessary to sustain the studios’ work over time. Ubisoft emphasized that the rationale for these layoffs is not related to individual performance or the quality of work produced.
Despite these layoffs, Ubisoft reassured stakeholders that the long-term direction of both studios remains unchanged. The company hinted at upcoming projects, including an “unannounced innovative tech project” that will benefit from a refined team setup. Ubisoft Stockholm has indicated ambitions for something new and exciting, further fueling speculation about future developments.
Both Massive and Ubisoft Stockholm will continue to play an essential role in the development of Ubisoft’s Snowdrop engine, which powers notable titles such as *Star Wars Outlaws*, *The Settlers: New Allies*, and *Avatar: Frontiers of Pandora*. According to IGN, development of the *Tom Clancy’s The Division* series remains a priority for Ubisoft, especially following announcements regarding the development of *The Division 3*. The company is also preparing to celebrate the series’ 10-year anniversary with updates for *The Division 2*, including a time-limited DLC and a new extraction mode.
These layoffs mark the second significant round of staff reductions announced by Ubisoft in early 2026. Just last week, the company closed its Halifax studio shortly after its developers voted to unionize, although Ubisoft asserted that these events were not connected.
As the gaming industry faces challenges related to workforce management and financial sustainability, the impact of these layoffs resonates deeply within the community. Ubisoft’s recent restructuring efforts highlight the ongoing shifts and adjustments necessary within the sector.
