Major gaming publisher Ubisoft has announced another round of layoffs. The story, first broken in Bloomberg, announced 45 job cuts between its San Francisco studio and the North Carolina-based Red Storm Entertainment. This is hardly the first set of cutbacks for Ubisoft—or other software corporations—this year. These firings are representative of a recurring pattern amongst gaming companies as they reorient their strategies in the wake of changing market conditions and player expectations.
Reasoning for Layoffs
In a statement provided to IGN, a spokesperson for Ubisoft declared that the layoffs were part of a broad restructuring effort in the company. They followed up with this by stating, “This difficult yet necessary decision was made to align these studios’ organizations with their future business and development objectives. We are committed to providing comprehensive support to those affected, including severance and career assistance, and we thank them for their many contributions to Ubisoft.”
These layoffs represent the third round for Ubisoft in 2024. The first occurred in April when the company announced it was releasing 45 workers in its global publishing and Asia-Pacific divisions. The second round of layoffs ensued in June when 33 workers in the company’s Toronto studio were cut. A statement given to the press elucidated this decision as part of a realignment to deliver on Ubisoft’s “ambitious roadmap.” In May, Ubisoft disclosed it was shuttering work on its free-to-play shooter Tom Clancy’s The Division: Heartland. Many members of the Red Storm team were moved to other divisions following this, though it is unclear how many were affected by this latest wave of layoffs.
Industry-Wide Problem
2024 has been a tumultuous year for workers in the gaming industry. Sony announced in February that it would be cutting 900 staff between its various studios. In January, it was reported Unity Software would be laying off 1800 employees as part of a “company reset.” AAA gaming studios have widely refocused efforts on their largest, most mainstream properties that could reap the most profit. Companies have been responding to erratic economic conditions and the burden of development that major titles increasingly require. Smaller teams and studios have been embroiled in these cost-cutting measures as a result.
Big releases are met with great expectations from players. Over time, budgets for games have ballooned as technology has advanced. More manpower has been a necessity as cinematic experiences have become the norm. The crunch of these expectations is likely part of the weight that is pressuring studios and publishers. It could be the case that the industry as a whole will face some setbacks. Fewer titles may be released as companies brace themselves on their most marketable titles.
What Does the Future Hold?
By the end of 2023, roughly ten thousand jobs, from programmers to sound designers, in the gaming industry were lost. 2024 already exceeded that number by June. The year is far from over and it is worrisome to consider what other studios could suffer. It remains to be seen how many more layoffs are to be expected as the gaming industry undergoes a painful transition. Things are changing, and not exactly for the better.
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