Ubisoft slashes 105 more jobs at red storm entertainment, ending 30-year legacy
Ubisoft’s relentless cost-cutting continues with the permanent closure of Red Storm Entertainment, the veteran studio behind iconic Tom Clancy titles. The move, announced today, eliminates 105 positions, marking the third round of layoffs at the North Carolina-based team in just two years.
Red storm entertainment ceases operations after decades of innovation
Founded in 1996, Red Storm Entertainment built its reputation on foundational Tom Clancy games, including the original Tom Clancy's Rainbow Six (1998) and Tom Clancy's Ghost Recon (2001). The studio also contributed significantly to numerous spin-offs and sequels across multiple platforms.
But recent years have witnessed a steady erosion of the studio’s resources. Despite years of development, projects like a Tom Clancy's Splinter Cell VR game and The Division Heartland, announced in 2021, were shelved. The cancellation of The Division Heartland in 2024 proved to be the final blow.
The company’s shift towards VR development in the mid-2010s yielded titles like Werewolves Within (2016), Star Trek: Bridge Crew (2017), and Assassin's Creed Nexus VR (2023), which will now serve as the studio's final release. However, even these efforts couldn’t offset the broader financial pressures.
This latest downsizing follows hundreds of staff cuts and the closure of several Ubisoft studios since the start of 2024. In January, six games were canceled, including a remake of Prince of Persia: Sands of Time, and studios in Stockholm and Halifax were shuttered. A subsequent announcement revealed plans to eliminate 200 jobs at Ubisoft’s Paris headquarters, sparking protests. 40 jobs were eliminated at Ubisoft Toronto in February, raising concerns about the future of the long-awaited Splinter Cell remake.
Red Storm Entertainment, which employed 180 people in 2022, has become a casualty of Ubisoft’s aggressive restructuring. The studio will now focus on behind-the-scenes technical work, a far cry from its history of crafting immersive gaming experiences. The company's trajectory reflects a broader trend in the industry: even established developers are struggling to maintain profitability amidst evolving market demands.
The decision to permanently close Red Storm Entertainment underscores the increasing pressure on Ubisoft to streamline operations and prioritize projects with the highest potential for return. It’s a stark reminder that legacy doesn't always guarantee survival in the fast-paced, often brutal, world of video game development.