Ubisoft Axes 55 More Jobs at Division Studios as Cost-Cutting Intensifies

Ubisoft dropped another hammer.

The Division studios Massive Entertainment and Ubisoft Stockholm will shed approximately 55 positions. The announcement comes barely a week after Ubisoft shuttered its Halifax studio, putting 71 people out of work.

This one stings differently. Massive Entertainment, the Swedish powerhouse behind Star Wars Outlaws and The Division series, isn't being closed. But 55 folks across Malmö and Stockholm locations are getting the boot anyway.

Not About Performance, Says Ubisoft

An internal email landed in employee inboxes earlier today. The message was crystal clear: these cuts have nothing to do with how well anyone's doing their job. The restructuring follows completion of a voluntary buyout programme launched last autumn , which apparently didn't thin the ranks enough.

Workers at these studios got offered the chance to leave voluntarily late last year. Some took it. Wasn't enough.

The email explained this as "forward-looking and structural" changes. Corporate speak for "we need fewer people going forward."

Division 3 Work Continues

Here's the twist. Massive will keep pushing on The Division 3 despite the redundancies. The studio also continues developing improvements to the Snowdrop engine and Ubisoft Connect service.

Julian Gerighty, executive producer on The Division franchise, recently claimed Division 3 is "shaping up to be a monster" and will have an impact matching the original game. Those are massive expectations for a studio now operating with fewer hands.

The team's also working on what Ubisoft describes as an "unannounced innovative tech project." No clue what that entails.

Part of Brutal Cost-Cutting Drive

These 55 jobs represent the latest casualties in Ubisoft's relentless cost reduction programme. The French publisher confirmed last November it had cut 1,500 positions over the preceding 12 months.

The company hit its target of reducing spending by €200 million compared to 2023 levels. They're already eyeing another €100 million in cuts by fiscal year 2027.

CEO Yves Guillemot is betting big on generative AI to fill the gap. He's called the technology "a revolution for our industry as the shift to 3D" and insists AI is already deployed across every Ubisoft team.

Timing Raises Questions

The proximity to the Halifax closure is making people twitchy. That studio formed Ubisoft's first North American union in late December. Three weeks later, doors shut.

Ubisoft insists the Halifax decision was unrelated to unionisation and part of broader restructuring. CWA Canada isn't buying it. The union's pursuing legal action and demanding Ubisoft prove the timing was coincidence.

With these Swedish cuts announced days later, the optics are dreadful. Ubisoft's carrying €1.15 billion in net debt and bleeding cash despite operating with significantly fewer staff.

What's Next for Affected Workers

Ubisoft says impacted employees will receive "comprehensive severance packages and additional career assistance." Cold comfort when 55 people across two studios are hunting for new positions simultaneously in a struggling industry.

The company's long-term roadmap for both studios supposedly "remains unchanged." They'll keep cranking on Division content, Avatar projects, and Snowdrop engine improvements.

Whether 55 fewer developers affects those timelines remains to be seen. Division 3 was already announced back in 2023 with precious little shown since. Fans are waiting. Pressure's mounting.

Massive Entertainment has proven itself technically brilliant. Star Wars Outlaws showcased the Snowdrop engine's capabilities despite mixed commercial performance. Avatar: Frontiers of Pandora delivered stunning visuals.

The studio's track record suggests they'll deliver. Question is whether Ubisoft gives them the resources and time required. Right now, the publisher seems more focused on trimming costs than nurturing development.

This is gaming in 2026. Talented developers shown the door whilst executives tout AI as the solution. The human cost of Ubisoft's restructuring keeps climbing.