Ubisoft has confirmed another wave of layoffs as it continues its cost-cutting efforts, with 105 employees set to leave the veteran Tom Clancy game studio Red Storm Entertainment. The North Carolina-based team, established in 1996, has a long history of working on Ghost Recon and Rainbow Six titles. In recent times, they developed several VR games, contributed to the unsuccessful live-service shooter XDefiant, and spent years on the now-canceled free-to-play spinoff The Division Heartland.
According to IGN, Red Storm Entertainment is being permanently downsized, and game development has officially ended at the studio. The developer, which will mark its 30th anniversary later this year, will stay open but shift its focus to behind-the-scenes technical support.
This marks the third round of layoffs at Red Storm in three years, following 19 job cuts last year and 45 positions lost across Red Storm and San Francisco in 2024. Before these reductions and today's additional 105 layoffs, the company had 180 employees in 2022—a number that has now been drastically reduced.
Ubisoft has eliminated hundreds of jobs and shut down multiple studios in previous years, with 2026 already off to a harsh start. In January, the company canceled six games, including the Prince of Persia: Sands of Time remake, and completely closed two studios (Ubisoft Stockholm and Ubisoft Halifax), while also making layoffs at its Abu Dhabi office, Trials studio RedLynx, and Avatar: Frontiers of Pandora developer Massive Entertainment.
Just a week later, Ubisoft announced plans to cut 200 jobs at its Paris headquarters, sparking protests in the French capital. Then, in February, Ubisoft had to reassure fans that the long-awaited Splinter Cell remake was still in development after 40 jobs were eliminated at Ubisoft Toronto.
Over three decades, Red Storm Entertainment has contributed to more than 30 game projects, including the original Tom Clancy's Rainbow Six released in 1998 for the PlayStation and N64. The studio later developed the 2001 Tom Clancy's Ghost Recon for PS2, GameCube, and Xbox, before working on numerous sequels and spinoffs.
In recent years, the studio became Ubisoft's VR specialist, developing titles like the 2016 social deduction game Werewolves Within, the well-received 2017 Star Trek: Bridge Crew, and 2023's Assassin's Creed Nexus VR—which will now be Red Storm's final release.
The past few years have seen Ubisoft cancel several in-progress projects after years of development, including a Tom Clancy's Splinter Cell VR game and The Division Heartland, announced in 2021 and confirmed canceled in 2024.
