Ubisoft Announces Layoffs at Swedish Studios

Ubisoft has informed employees at Massive Entertainment and Ubisoft Stockholm of a proposed organizational restructure. The company estimates that approximately 55 roles across the two Swedish studios could be affected.

This marks the gaming giant's second round of layoffs in 2026. The decision follows the completion of a Voluntary Leave Program launched in the fall of 2025 and a finalized long-term roadmap. Ubisoft maintains that these changes are structural and forward-looking, intended to streamline operations and sustain the studios' work over time.

Despite the workforce reduction, Ubisoft asserts that the long-term direction for the studios remains unchanged. Both studios are expected to continue their current development pipelines, including The Division 3 and a new, undisclosed franchise.

Ubisoft is moving forward with significant changes at its Swedish development studios. The company has proposed a restructure that impacts Massive Entertainment and Ubisoft Stockholm. In a statement, Ubisoft clarified that the move follows the completion of the Voluntary Leave Program launched during the fall of 2025. Additionally, a finalized long-term roadmap and a completed staffing process provided the company with clearer visibility into the capacity required to support the studios' work sustainably.

The company emphasized that the proposed changes are not a reflection of the teams' output. Ubisoft stated, "These proposed changes are forward-looking and structural, they are not related to individual performance, recent deliveries or the quality of the work produced by the teams." The layoffs affect roughly 55 roles in total.

Ubisoft claims that the "long-term direction for the studios remains unchanged." This suggests that despite the reduction in staff, the strategic goals for these major development hubs remain intact.

Despite the internal reorganization, development on major titles continues. Massive Entertainment, known for developing The Division series, Star Wars Outlaws, and Avatar: Frontiers of Pandora, will continue working on projects that include The Division 3.

Meanwhile, Ubisoft Stockholm is reportedly working on a new franchise that remains under wraps. According to reports, this project is harnessing the studio's proprietary Ubisoft Scalar cloud computing technology. This technology allows for complex game systems and persistent worlds, suggesting the new project could be a significant undertaking for the studio.

The layoffs in Sweden follow another major workforce reduction in early January. Ubisoft announced the shutdown of Ubisoft Halifax, resulting in the loss of 71 jobs.

The timing of the Halifax closure was notable, as workers at that studio had unionized just 16 days prior to the announcement. Ubisoft described the decision to close the Halifax studio as part of "company-wide actions to streamline operations." This context suggests a broader trend of consolidation and cost-cutting measures across the publisher's global operations.

Ubisoft is undergoing a period of significant transition in early 2026, marked by layoffs at its Swedish studios and the closure of its Halifax location. While the company frames the Swedish restructure as a necessary step for long-term sustainability and clarity, the loss of 55 roles represents a significant impact on the workforce. As the gaming giant navigates these changes, the industry watches closely to see how the remaining teams at Massive Entertainment and Ubisoft Stockholm will deliver on their ambitious upcoming projects.