Ubisoft Ends Game Development at Red Storm, Laying Off More Than 100 Devs
The historic Tom Clancy studio within Ubisoft, Red Storm Entertainment, will shift to a support role amid Ubisoft’s broader restructuring efforts.
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Ongoing reorganization and consolidation efforts seem to be continuing at Ubisoft, as today the company will announce (according to GamesIndustry.biz and VGC) that it will be ceasing game development at one of its most legendary studios, Red Storm Entertainment. The move will result in more than 100 developers losing their jobs.
According to reports, around 105 developers have been affected by the layoffs, with all active game development at the studio now halted. Red Storm will continue operating in a reduced capacity, focusing instead on global IT services and support for Ubisoft’s Snowdrop engine, which was created by The Division developers, Massive Entertainment.
Founded in 1996 by author Tom Clancy, Red Storm Entertainment played a foundational role in shaping tactical shooters, developing early entries in franchises such as Rainbow Six and Ghost Recon. Ubisoft acquired the studio in 2000, after which Red Storm contributed to multiple flagship titles across the publisher’s portfolio. In more recent years, the studio shifted its focus toward VR development, working on projects like Star Trek: Bridge Crew and Assassin’s Creed Nexus VR, as well as the canceled Splinter Cell VR game.
Additionally, the studio's most recent major project, The Division Heartland, was also canceled in 2024 following public testing phases, signaling potential instability in the studio’s long-term roadmap.
The decision to cease development at Red Storm is part of a larger cost-cutting and restructuring strategy announced earlier this year. Ubisoft has been actively reducing expenses, canceling multiple projects, delaying others, and restructuring its global studio network.
Red Storm’s transition into a support-focused studio aligns with this broader shift toward centralized technology development and shared infrastructure, particularly around tools like the Snowdrop engine.
The layoffs also come amid a wider wave of industry job cuts, as major publishers continue to reassess budgets, project scope, and long-term sustainability. Highguard shutting down mere weeks after it launched is another recent example of the game industry's current volatility.
Star Trek: Bridge Crew
For many, the loss of Red Storm as an active game development studio will carry symbolic weight. The team was not only a key part of Ubisoft’s history, but also has historically been a cornerstone of the tactical shooter genre.
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