Ubisoft closes Winnipeg office, laying off another 65 staff

French video game developer Ubisoft has shuttered its Winnipeg office, putting 65 employees out of work. 

The news: First reported by Insider Gaming earlier this week, Ubisoft closed the Winnipeg studio as part of ongoing organizational changes that could impact up to 380 employees across the company. The latest changes also include the closure of its studio in Belgrade, and layoffs in its Barcelona studio as it restructures to focus solely on projects related to the Rainbow Six franchise.

From the source: “Ubisoft is continuing to take targeted actions to reduce costs and focus resources on its strategic priorities as part of its efforts to strengthen the business over the long term,” a source from within Ubisoft told BetaKit. 

Following the thread: Opened in 2018, Ubisoft Winnipeg was the first AAA game studio in Manitoba, and worked on flagship franchises like Rainbow Six, Assassin’s Creed, and Far Cry. In 2022, Ubisoft announced plans to expand the operation by adding 200 jobs, part of a $139 million investment to grow the studio to 300 employees by 2030. Last year, Ubisoft said it had received more than $605 million euros (roughly $977 million CAD) in tax credits in Canada between 2020 and 2024.

The Winnipeg office’s closure comes six months after Ubisoft Halifax suffered the same fate, putting 71 people out of work shortly after the majority of the workplace voted to unionize. At the time, Ubisoft told investors it was entering the third phase of its cost reduction program intended to cut an additional 200 million euros ($323.6 million CAD) over the next two years. Ubisoft still has an office in Toronto and four Québec offices in Montréal, Chicoutimi, Québec City, and Sherbrooke. 

Final thought: While gaming brought in over $500 billion USD in revenue last year, layoffs are still a persistent story in the industry as production costs soar. This week, Xbox’s new CEO Asha Sharma reportedly told employees that it’s planning to make significant layoffs next month. As Microsoft’s gaming division, Xbox operates multiple studios with Canadian offices, including Compulsion Games, The Coalition, and Bethesda. 

BetaKit’s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.

Feature image courtesy Ubisoft Winnipeg.