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Ubisoft Closes Halifax Studio Weeks After Unionization
Economics

Ubisoft Closes Halifax Studio Weeks After Unionization

Engadget6d ago
3 min read
📋

Key Facts

  • ✓ Ubisoft is closing its Halifax studio just 16 days after workers voted to unionize.
  • ✓ 61 workers at the studio joined the Game & Media Workers Guild of Canada.
  • ✓ 73.8 percent of employees voted in favor of unionizing.
  • ✓ The closure will affect 71 positions.
  • ✓ Ubisoft stated the shutdown is part of company-wide actions to streamline operations and reduce costs.

In This Article

  1. Quick Summary
  2. Unionization Efforts and Timing
  3. Corporate Restructuring and Cost-Cutting
  4. A Pattern of Downsizing
  5. Impact on Development
  6. Conclusion

Quick Summary#

Ubisoft has announced the immediate closure of its Ubisoft Halifax studio in Canada. The decision comes just 16 days after the studio's employees voted to unionize, a timeline that has drawn attention despite the company's insistence that the two events are unrelated. The studio, which employed 71 people, was working on mobile adaptations of major franchises including Rainbow Six and Assassin's Creed.

The publisher framed the shutdown as part of a broader strategy to reduce costs and streamline operations that has been ongoing for the past 24 months. This move is the latest in a series of financial adjustments for the company, which has previously closed offices in San Francisco, London, and Leamington, and reduced its workforce by eight percent in 2024. The company has stated it will support affected employees with severance packages and career assistance.

Unionization Efforts and Timing#

On December 22, workers at the Ubisoft Halifax studio announced that they had successfully unionized. According to reports, 61 workers at the studio joined the Game & Media Workers Guild of Canada. The vote to organize was decisive, with Jon Huffman, the studio's lead programmer, reporting that 73.8 percent of employees voted in favor of unionizing.

At the time of the vote, Huffman described the successful unionization as a "huge relief" for the team. However, the celebration was short-lived. Just over two weeks later, Ubisoft announced that the studio would be shutting down. The proximity of the closure to the unionization vote has raised questions, though the company has explicitly stated that the decision to close the facility is not connected to the workers' decision to organize.

"huge relief"

— Jon Huffman, Lead Programmer

Corporate Restructuring and Cost-Cutting#

Ubisoft officials have clarified that the closure of the Halifax studio is a component of a larger financial restructuring plan. In an official statement, the company noted, "Over the past 24 months, Ubisoft has undertaken company-wide actions to streamline operations, improve efficiency, and reduce costs." The statement further elaborated that "As part of this, Ubisoft has made the difficult decision to close its Halifax studio."

The company emphasized that the move was difficult but necessary for the organization's long-term health. The closure affects 71 positions at the Halifax location. Ubisoft has committed to providing "comprehensive severance packages and additional career assistance" to those impacted by the shutdown. This focus on cost reduction is not an isolated incident but rather a sustained effort by the publisher to tighten its financial belt.

A Pattern of Downsizing#

The closure of Ubisoft Halifax fits into a broader pattern of downsizing and restructuring at the publisher. In October, the company announced that Massive Entertainment—the developer behind The Division series, Star Wars Outlaws, and Avatar: Frontiers of Pandora—was offering buyouts to some of its employees. The company described that initiative as a "voluntary career transition program."

Over the last few years, Ubisoft has taken several steps to reduce its operational footprint and workforce. These measures have included:

  • Closing offices in San Francisco and London
  • Laying off workers at the Leamington studio
  • Reducing global headcount by eight percent in 2024

These actions suggest a continued focus on consolidating resources and reducing overhead across the company's global operations.

Impact on Development#

The Ubisoft Halifax studio was specifically tasked with developing mobile titles for the publisher's most recognizable brands. The studio was actively working on projects within the Rainbow Six and Assassin's Creed franchises. The sudden closure of the studio raises questions about the future of these specific mobile development projects and the teams assigned to them.

While Ubisoft has not publicly detailed the fate of the specific games in development at Halifax, the closure of a dedicated mobile support studio indicates a potential shift in resource allocation. The loss of 71 specialized staff members represents a significant disruption to the development pipeline for these franchises on mobile platforms.

Conclusion#

The shuttering of Ubisoft Halifax marks a significant event in the ongoing relationship between major game publishers and their workforces. While Ubisoft maintains that the closure is strictly a financial decision resulting from a two-year cost-cutting initiative, the timing—occurring less than three weeks after a successful unionization vote—is notable. The event highlights the precarious nature of employment in the gaming industry, where even successful organizing efforts cannot guarantee job security.

As the industry continues to navigate economic challenges, the situation at Ubisoft Halifax serves as a case study in how corporate restructuring and labor organization intersect. For the 71 affected employees, the focus now shifts to the severance and career assistance promised by the company as they seek new opportunities in a volatile market.

"Over the past 24 months, Ubisoft has undertaken company-wide actions to streamline operations, improve efficiency, and reduce costs."

— Ubisoft Official Statement

"As part of this, Ubisoft has made the difficult decision to close its Halifax studio. 71 positions will be affected. We are committed to supporting all impacted team members during this transition with resources, including comprehensive severance packages and additional career assistance."

— Ubisoft Official Statement
# Arts & Entertainment # site|engadget # provider_name|Engadget # region|US # language|en-US # author_name|Will Shanklin

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