Ubisoft has revealed plans to implement layoffs and halt game development operations at Red Storm Entertainment

According to information provided to GamesIndustry.biz by an insider, Ubisoft's North Carolina-based studio, Red Storm Entertainment, will no longer engage in game development, leading to a reduction of 105 positions.

The studio will stay operational, redirecting its efforts towards the Snowdrop engine, as well as IT and customer support functions.

Established in 1996, Red Storm Entertainment has had strong ties with the Tom Clancy gaming franchise, notably participating in the Tom Clancy's Ghost Recon series and developing the 2023 Oculus Quest 2 game, Assassin's Creed Nexus VR.

Recently, Red Storm was involved in creating an unnamed Splinter Cell VR game, which was canceled in 2022. They were also working on Tom Clancy's The Division Heartland, discontinued in 2024.

A representative from Ubisoft explained that the layoffs align with Ubisoft’s broader financial efficiency strategy. The affected employees will receive extensive assistance through severance packages as part of their support.

Previously, Ubisoft had implemented staff reductions at Red Storm in July 2025 and August 2024.

Red Storm is part of Ubisoft's "Creative Network," which is a group of studios outside its primary Creative Houses.

In an interview with GamesIndustry.biz earlier, Marie-Sophie de Waubert, Senior Vice President of Studio Operations, described the updated structure by stating that "Each Creative House will have allocated resources, and they will have the means to define and to develop their roadmap. HQ will act as a global allocator in terms of capital and resource, and the Core Services and the Creative Network are really the two supportive structures to help the Creative Houses to make their games."

Ubisoft is proceeding with a series of layoffs and studio shutdowns aiming for €200 million in savings. A voluntary resignation program began at its main office earlier this year, accompanied by a mandate for employees to return to office work full-time, inciting a strike by some of its workforce.