Key Takeaways
1. Ubisoft announced a second wave of job cuts affecting around 55 positions in its Swedish studios, including Massive Entertainment and Ubisoft Stockholm, following a voluntary leave initiative in fall 2025.
2. The restructuring is due to the completion of a voluntary program and a long-term strategic plan, not linked to individual employee performance or recent game launches.
3. Massive Entertainment is known for its work on The Division series, while Ubisoft Stockholm is involved in projects like Avatar and an unannounced title.
4. Ubisoft reassured that ongoing projects, including The Division 3, will not be affected by these layoffs.
5. This restructuring follows the earlier closure of Ubisoft’s Halifax studio, resulting in 71 layoffs, as part of efforts to streamline operations and reduce costs.
Toward the start of the new year, Ubisoft shared news about a second wave of job cuts linked to an organizational overhaul that may impact around 55 positions within its Swedish studios, which includes Ubisoft Stockholm and Massive Entertainment. This announcement comes after a voluntary leave initiative was put forward in the fall of 2025.
Details on the Changes
Ubisoft notified its staff about these alterations on January 13, stating that they were a result of finishing the voluntary program, finalizing a long-term plan, and assessing the necessary structure to function effectively.
In a message to IGN, Ubisoft stated, “Earlier today, we informed all employees in our Swedish studios (Massive Entertainment and Ubisoft Stockholm) about a proposed organizational restructuring that may affect approximately 55 roles across Malmö and Stockholm.”
Explanation Behind the Restructuring
The company elaborated:
This restructuring comes post the completion of the Voluntary Leave Program that was introduced during the fall of 2025, a finalized long-term strategy, and a completed hiring and appointment process, which together have provided clear visibility into the structure and capacity needed to support the two studios’ work and sustainability over time.
Ubisoft emphasized that these layoffs are not linked to the performance of individual employees or recent game launches, but are instead based on structural needs.
Impact on Studios
Massive Entertainment, one of the studios affected, is well-known for its contributions to The Division series, Star Wars Outlaws, and Avatar: Frontiers of Pandora. Since its acquisition in 2008, it has remained a vital part of Ubisoft’s overall success.
Conversely, Ubisoft Stockholm, which opened recently, has worked on the Avatar project and is rumored to be developing an unannounced title. Ubisoft reassured the teams that these restructuring changes would not interfere with their long-term plans and that ongoing projects, like The Division 3, would remain unaffected.
To give some context, this marks the second instance of job cuts under Ubisoft’s leadership in 2026. Previously, on January 6, Ubisoft declared the closure of its Halifax studio, leading to the layoff of 71 employees. Interestingly, this closure came just after the studio had voted in favor of unionization.
However, Ubisoft maintains that this choice was made alongside the company’s efforts to streamline operations, enhance efficiency, and reduce costs. The Halifax team had been engaged in developing mobile games like Assassin’s Creed Rebellion.
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