Ubisoft Shuts Down Game Development at Red Storm Entertainment, 105 Jobs Cut

Ubisoft has ended game development at Red Storm Entertainment, laying off 105 employees as part of its ongoing cost-cutting efforts.

Red Storm Entertainment is one of gaming's more storied studios. Founded in 1996 by novelist Tom Clancy himself, the North Carolina-based studio made a name for itself with the release of Tom Clancy's Rainbow Six back in 1998. That game was a landmark moment for tactical shooters.

Three years later, after being acquired by Ubisoft in 2000, the studio followed it up with Tom Clancy's Ghost Recon in 2001, which was equally well-received.

Over the course of nearly three decades, Red Storm has contributed to more than 30 game projects spanning franchises like Far Cry, Rocksmith, and The Division series.

In recent years, the studio had shifted its focus toward VR development. Notable releases from that era include the 2016 social deduction game Werewolves Within, Star Trek: Bridge Crew in 2017, and most recently, Assassin's Creed Nexus VR in 2023. That last title will now go down as the studio's final ever release.

Red Storm had also been working on an untitled Splinter Cell VR game, which was cancelled in 2022, and Tom Clancy's The Division Heartland, announced in 2021 and confirmed cancelled in 2024.

According to an internal announcement (via GI.biz), game development at the studio has been formally halted. The studio itself will not be shutting down entirely, but the remaining staff will be redirected toward technical support roles, specifically around the Snowdrop engine, IT, and customer relations. It is a significantly reduced version of what Red Storm once was.

As noted by IGN, Red Storm employed around 180 people back in 2022. This is now the third round of layoffs at the studio in as many years, following 45 job losses across Red Storm and Ubisoft San Francisco in 2024, and 19 further cuts last year.

The studio that was once set to lead "Ubisoft's AAA VR future with Assassin's Creed" is now a shadow of its former self, right as it approaches its 30th anniversary.

A source at Ubisoft told GI.biz that the Red Storm layoffs are part of Ubisoft's global "savings plan," adding that departing employees will be offered comprehensive support, including severance packages.

Earlier this year, the company cancelled six games, including the long-awaited Prince of Persia: Sands of Time remake and shut down Ubisoft Stockholm and Ubisoft Halifax entirely. Layoffs followed at RedLynx, Massive Entertainment, and Ubisoft's Abu Dhabi office.

Then came the announcement of 200 job cuts at its Paris headquarters, which reportedly led to protests in the French capital. Shortly after, Ubisoft Toronto saw 40 positions eliminated, prompting the company to reassure fans that the Splinter Cell remake was still in development.