Ubisoft has officially confirmed a new wave of job cuts at its Toronto office, resulting in the loss of 40 staff members as part of a wider corporate restructuring effort. This development comes as the video game industry faces a turbulent few years, with massive shifts in how major publishers manage their global teams. For a company as large as Ubisoft, maintaining a steady output while navigating a changing economic landscape has led to a series of difficult internal choices. In recent months, the French gaming giant has been undergoing a “major reset,” a corporate-wide overhaul aimed at streamlining its production pipeline and cutting back on ballooning budgets. This restructuring follows a significant $1.25 billion investment from Tencent, which has led to shared control over flagship properties like Assassin’s Creed and the birth of new subsidiaries like Vantage Studios.
Historically, Ubisoft Toronto has been a cornerstone of the company’s North American operations. Since its inception, the studio has delivered high-profile blockbusters, including Far Cry 6, Watch Dogs: Legion, and Splinter Cell Blacklist. It has also functioned as a vital support hub, lending its expertise to massive titles like Star Wars Outlaws and Rainbow Six Siege. However, the broader gaming world in 2026 remains a precarious place; from Riot Games reducing its fighting game teams to the closure of Ubisoft Halifax, the trend of downsizing has become an unfortunate constant for both developers and fans.
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Job Cuts Strike the Toronto Branch
In a move that has sent ripples through the Canadian development community, Ubisoft has officially confirmed that 40 employees at its Toronto location have been let go. First reported by MobileSyrup, the layoffs represent a reduction of roughly 8% of the studio’s total workforce. The company described this move as the “final phase” of a global plan to save costs and refocus its creative energy.
In a public statement, Ubisoft addressed the departure of these staff members, emphasizing that the cuts were purely financial rather than a reflection of performance. “This decision was not taken lightly and does not in any way reflect the talent, dedication, or contributions of the individuals affected,” the company stated, promising to provide severance and career help to those impacted. Despite the loss of staff, an internal email shared by VGC noted that the studio would remain a “key contributor” to Ubisoft’s ongoing co-development mandates.
Naturally, the news of these cuts sparked immediate concern regarding the highly anticipated Splinter Cell Remake. The project, which was first announced in late 2021, has been shrouded in mystery for years with no official gameplay footage released to the public. However, speaking to Kotaku, Ubisoft confirmed that development on the stealth-action title is still moving forward despite the smaller headcount. The studio will also continue its work supporting Rainbow Six and other unannounced service teams.
While the confirmation that the game is still “totally happening” provides some relief, the recent cancellation of the Prince of Persia: The Sands of Time Remake—a project the Toronto team was actually assisting with—creates an air of uncertainty for Sam Fisher’s return. With director David Grivel only recently returning to the project in late 2025, the remake might still be quite a distance from entering full-scale production.
The situation at Ubisoft Toronto is not happening in a vacuum. 2026 has already been a devastating year for game developers across the board. Wildlight Entertainment, the creators of Highguard, recently saw massive layoffs just weeks after the game was released, and Moonshot Games has similarly confirmed cuts to its workforce. These persistent reductions suggest that the industry is still searching for a sustainable middle ground between high-budget development and realistic profit margins.
Even within Ubisoft’s own walls, the “major reset” has already claimed several high-profile victims. Ubisoft has canceled at least six projects and pushed back seven others in a frantic bid to balance the books. This includes the delay of a rumored Assassin’s Creed 4: Black Flag remake and a proposed reduction of 200 jobs at the Paris headquarters, which sparked a labor strike among French unions. These internal tensions highlight a growing divide between corporate strategy and the developers on the front lines.
Ubisoft’s legal troubles are also mounting. According to PSU, former Assassin’s Creed franchise lead Marc-Alexis Côté is currently suing Ubisoft for $1.3 million, alleging “constructive dismissal” following a messy departure from the company. Between legal battles, studio restructurings, and project cancellations, the path forward for Sam Fisher’s revival seems more cluttered than ever. While Toronto remains a “key contributor” to service teams, fans are left wondering if the “final phase” of these cost-saving measures will ultimately lead to a more focused studio or a further hollowed-out development team.
