Ubisoft’s Red Storm Entertainment Lays Off 19 Employees Amid Global Cost-Cutting Measures
On June 2024, Ubisoft’s subsidiary Red Storm Entertainment announced the layoff of 19 staff members as part of the company’s broader global cost-saving efforts. The layoffs affect various departments within the studio, known for titles such as Tom Clancy’s Star Trek: Bridge Crew. Ubisoft cited the need to optimize operational efficiency and adapt to current market conditions as the primary reasons behind the decision.
According to an official statement from Ubisoft, the restructuring aims to ensure long-term sustainability and maintain focus on key projects. The company emphasized that these measures are part of a global initiative affecting multiple studios worldwide, reflecting the challenging economic environment impacting the video game industry.
Red Storm Entertainment, based in the United States, has been a significant contributor to Ubisoft’s portfolio, particularly in the tactical shooter and VR genres. Despite the layoffs, Ubisoft confirmed ongoing development on existing and upcoming titles, reaffirming its commitment to delivering quality gaming experiences.
This announcement follows Ubisoft’s recent financial moves, including securing a $1.25 billion investment from Tencent earlier this year, which was intended to support growth and innovation. However, the company continues to face pressures to streamline operations amid fluctuating market demands.
Source: Ubisoft official press release, June 2024
Image credit: Ubisoft / Red Storm Entertainment
