Cary, North Carolina – Ubisoft is restructuring its operations, resulting in the elimination of 105 jobs at its Red Storm Entertainment studio, a veteran game developer known for its work on the Tom Clancy’s franchise. While the studio will remain open, its focus is shifting away from game development and towards supporting the Snowdrop engine, as well as providing IT and customer relations services, according to a source familiar with the matter.
The layoffs represent the latest in a series of cuts at Ubisoft as the company navigates a challenging market and aims to achieve €200 million in savings. This move follows previous reductions at Red Storm in July 2025 and August 2024, signaling a broader strategic shift within the gaming giant. The news underscores the increasing pressures facing the AAA game development sector, marked by a “persistently more selective AAA market and an increasingly competitive shooter landscape,” as described in Ubisoft’s recent statements.
A Legacy in Tactical Gaming
Founded in November 1996 by author Tom Clancy, manager Doug Littlejohns, and software development company Virtus Corporation, Red Storm Entertainment quickly became synonymous with tactical shooters. The studio’s early successes included adaptations of Clancy’s novels, such as Tom Clancy’s Politika and Tom Clancy’s Rainbow Six, establishing a reputation for immersive and realistic gameplay. Ubisoft acquired Red Storm in August 2000, further solidifying its position within the industry. Red Storm Entertainment, as of 2022, employed 180 people.
Over the years, Red Storm contributed significantly to the Ghost Recon series, a cornerstone of the Tom Clancy’s universe. More recently, the studio ventured into virtual reality with titles like Assassin’s Creed Nexus VR (released in 2023), Werewolves Within, and Star Trek Bridge Crew. However, several projects, including an untitled Splinter Cell VR game (cancelled in 2022) and Tom Clancy’s The Division Heartland (cancelled in 2024), were ultimately scrapped, foreshadowing the current restructuring.
Part of a Larger Restructuring at Ubisoft
Red Storm’s transition reflects Ubisoft’s broader reorganization, which involves a shift towards a structure centered around five “Creative Houses.” The studio now falls under Ubisoft’s “Creative Network,” a group of studios designed to support these core creative teams. Marie-Sophie de Waubert, SVP of Studio Operations, explained in January that the Creative Network provides essential resources and support to the Creative Houses, allowing them to focus on game development.
This restructuring isn’t happening in isolation. Ubisoft has also initiated a voluntary redundancy program at its headquarters and requested employees to return to full-time office work, a move that prompted a strike by workers. The company has also closed development offices in Ubisoft Halifax and Ubisoft Stockholm, and restructured offices in Abu Dhabi, Redlynx studio, and Massive Entertainment, all contributing to a wave of job losses across the organization.
Support for Affected Employees
According to an Ubisoft source, the company is committed to supporting departing employees with comprehensive severance packages and assistance. This includes resources to aid them find new employment opportunities. The layoffs at Red Storm are part of a larger global savings plan aimed at streamlining operations and adapting to the evolving gaming landscape.
The Future of Red Storm Entertainment
While game development at Red Storm Entertainment is ceasing, the studio will continue to play a vital role within Ubisoft by focusing on the Snowdrop engine – the technology powering many of the company’s flagship titles – and providing essential IT and customer support services. This shift signifies a strategic realignment, prioritizing technological infrastructure and support functions over direct game creation.
The changes at Red Storm Entertainment are indicative of a broader trend within the gaming industry, where companies are increasingly focused on efficiency and cost-cutting measures. The industry faces challenges including rising development costs, shifting consumer preferences, and increased competition. Ubisoft’s restructuring is a response to these pressures, aiming to position the company for long-term success in a dynamic market.
Ubisoft is scheduled to report its next financial results in May, which will provide further insight into the impact of these restructuring efforts. The company will likely offer additional details on its strategic direction and future plans during that time.
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