Ubisoft's Workforce Reorganization: 124 Positions Cut, 98 in Canada

Ubisoft, the renowned video game company, has recently carried a strategic workforce reduction involving 124 employees. Ubisoft claims that this move is aimed at enhancing operational efficiency within the organization. The impact of this restructuring is primarily felt in Ubisoft's Canadian studios, with 98 of the affected positions situated in Canada. These layoffs account for approximately 2% of Ubisoft's Canadian workforce and have affected the business administrative services and IT teams mainly, including the Hybride VFX studio in Montreal and the global IT department. Notably, these changes do not extend to the production teams.

In October, Ubisoft's earnings report revealed a reduction of approximately 1,300 positions since September 2022 through controlled hiring and targeted restructuring. The company's global workforce reached 19,410 employees by October, solidifying its position as one of the world's largest gaming companies. The Montreal office, with over 4,000 employees, felt the impact of these changes as Ubisoft aims to cut its budget by $215 million.

2023 has been a devastating year for the video game industry. Ubisoft's workforce reductions are only a small part of a broader industry trend that has seen various gaming companies, including Bungie, Team17, Free Radical Design, Epic Games, Telltale Games, Volition, and several more, undergoing similar workforce reductions or closures.

Here is Ubisoft's official statement via Polygon

Over the past few months, every team within Ubisoft has been exploring ways to streamline our operations and enhance our collective efficiency so that we are better positioned for success in the long term. In this context, today we announced that we are reorganizing our Canadian studios’ general and administrative functions and reducing headcount in Hybride (our VFX studio based in Montreal) and in our global IT team, which impacts 124 positions overall. These are not decisions taken lightly and we are providing comprehensive support for our colleagues who will be leaving Ubisoft during this transition. We also want to share our utmost gratitude and respect for their many contributions to the company. This restructuring does not affect our production teams.
As part of this transformation, 98 people, representing less than 2% of our Canadian workforce, from our business administrative services and IT team in Canada will be leaving Ubisoft. All affected Canadian employees will be supported through this change, including severance packages, extended benefits where applicable, and career assistance to help them navigate their transition.