Ubisoft Toronto has announced the layoff of 33 employees as part of a “targeted realignment” to ensure the studio can deliver on its ambitious plans. The move comes less than a month after the studio took over the development of the troubled Prince of Persia: The Sands of Time remake. The layoffs are part of a broader trend of workforce reductions across the gaming industry in 2023.
A Ubisoft representative stated, “Ubisoft Toronto has decided to conduct a targeted realignment to ensure it can deliver on its ambitious roadmap. Unfortunately, this will impact the roles of 33 team members who will be leaving Ubisoft. We are committed to providing comprehensive support to them, including severance and career assistance, to help through this transition.”
This restructuring is intended to streamline operations and focus on future growth, despite the inherent contradiction of laying off staff to achieve these goals. The gaming industry has seen similar justifications from other major companies this year. For example, Take-Two Interactive referred to it as “rationalizing its pipeline,” while Xbox chief Phil Spencer cited an “industry-wide lack of growth” as the reason for workforce reductions.
The layoffs are particularly surprising given Ubisoft Toronto’s involvement in high-profile projects like the Sands of Time remake and the Splinter Cell remake. Despite the reduction in staff, Ubisoft assured that the layoffs would not impact ongoing work on these titles. “Our plan remains unchanged, and our teams are working to deliver on the Splinter Cell remake and other projects at the studio,” the company said.
This decision reflects a broader trend where the rapid expansion during the early years of the COVID-19 pandemic is now facing a correction as market conditions normalize. Executives who drove this growth are now grappling with its aftermath, resulting in layoffs to maintain investor confidence.
