Ubisoft announces layoffs and the cease of game development at Red Storm Entertainment

A source at Ubisoft has informed GamesIndustry.biz that game development at the long-running North Carolina studio Red Storm Entertainment will cease, with the loss of 105 jobs.

The studio will remain open, but the work of the remaining employees will instead be focused on the Snowdrop engine, along with IT and customer relations.

Red Storm Entertainment was founded in 1996, and it has been closely associated with titles in the Tom Clancy’s franchise for most of its existence, including the Tom Clancy’s Ghost Recon series. It was also behind the 2023 Meta Quest 2 game Assassin’s Creed Nexus VR.

Recently, Red Storm had been working on an untitled Splinter Cell VR game, which was cancelled in 2022, and Tom Clancy’s The Division Heartland, which was cancelled in 2024.

An Ubisoft source said the layoffs at Red Storm were part of Ubisoft’s global savings plan, and that departing employees will be offered comprehensive support, including severance packages, to assist them.

Ubisoft had previously made layoffs at Red Storm in July 2025 and August 2024.

Red Storm formed part of Ubisoft’s “Creative Network”, a cluster of studios outside its five Creative Houses.

Speaking to GamesIndustry.biz in January, SVP of Studio Operations Marie-Sophie de Waubert explained the new structure: “Each Creative House will have allocated resources, and they will have the means to define and to develop their roadmap. HQ will act as a global allocator in terms of capital and resource, and the Core Services and the Creative Network are really the two supportive structures to help the Creative Houses to make their games.”

Ubisoft is in the process of making a round of layoffs and studio closures in order to make savings of €200 million. The company began a voluntary redundancy program at its head office in January, as well as asking staff to return to the office full time, prompting a strike by workers.