Ubisoft Cuts 19 Jobs at Red Storm Entertainment as Part of Cost-Saving Push

Image Credit: Ubisoft/Canva

Ubisoft has laid off 19 employees from Red Storm Entertainment, the studio best known for its work on Rainbow Six and various VR titles. The decision is part of the publisher’s ongoing effort to reduce costs, with a $110 million savings target set for the next two years.

In a statement shared with IGN, Ubisoft called the move a “targeted restructuring and global cost-saving efforts,” and said the layoffs were based on the current needs of Red Storm’s projects. While the company acknowledged the difficulty of letting people go, it stressed that the decision was necessary given its operational priorities. Those impacted will receive severance packages, extended healthcare coverage, and support with finding new roles.

The affected roles were reportedly tied to Rainbow Six Siege and internal work on Ubisoft’s Snowdrop engine. In an internal email to staff, Red Storm’s Managing Director Elizabeth Loverso said the changes, although tough, were “necessary to ensure our long-term resilience and to better align our structure with our strategic goals.”

Red Storm has had quite a history in the Tom Clancy universe. Founded by Tom Clancy himself, the studio joined Ubisoft in 2000 and played a big role in developing Rainbow Six, Ghost Recon, and more recently VR titles like Star Trek: Bridge Crew and Assassin’s Creed Nexus VR. However, in recent years, the studio has taken more of a support role, and some of its projects haven’t made it past the finish line.

Two of those canceled games — Splinter Cell VR and The Division Heartland — were both in development at Red Storm and saw layoffs when they were scrapped. The studio also helped out with XDefiant, which was officially shut down just last month. That closure led to job cuts at several Ubisoft offices, including Red Storm.

Ubisoft confirmed that no other studios were impacted this time, though it didn’t reveal how many employees are still with Red Storm or what the team is working on next.

This latest round of layoffs adds to the ongoing restructuring Ubisoft has been doing across the board. Earlier this year, the company also made staffing cuts in places like its Canadian branches, showing that this cost-cutting plan is far from over.