Ubisoft has closed its Halifax-based game development studio, cutting 71 jobs in a move that comes only weeks after a majority of the studio’s workforce voted to unionize. The shutdown has intensified debate around labor rights in the video game industry, particularly as it follows the first successful union effort at a Ubisoft studio in North America.
The French publisher confirmed that all positions at Ubisoft Halifax were affected by the closure. According to the company, the decision is part of a broader, multi-year restructuring plan designed to reduce costs, simplify operations, and improve overall efficiency across its global business. Ubisoft has stated that affected employees will receive severance packages and access to career transition support.
While Ubisoft insists the closure was planned as part of a long-term strategy, the proximity of the decision to the union vote has raised concerns among labor advocates and industry observers.
Union Certification Marked a Historic First for Ubisoft
The shutdown followed a decisive unionization vote by employees at Ubisoft Halifax. Sixty-one of the studio’s 71 workers voted to join the Game & Media Workers Guild of Canada, an organization affiliated with the Communications Workers of America. Roughly three-quarters of eligible employees supported the move, which included staff across development, design, programming, art, research, and quality assurance roles.
The union was officially certified about six months after workers first announced their intention to organize. Its approval represented a milestone not only for Ubisoft but also for the broader North American game development industry, where unionization efforts have historically faced significant resistance.
The Halifax vote placed Ubisoft under increased scrutiny, as the company has spent recent years attempting to rebuild trust following internal investigations, management shakeups, and public criticism over workplace culture.
Company Cites Financial Pressures and Restructuring
Ubisoft has rejected any suggestion that the closure was linked to the studio’s unionization. The publisher maintains that the decision was driven by financial realities rather than labor relations.
As part of its explanation, Ubisoft pointed to declining performance of Assassin’s Creed Rebellion, a mobile title developed at the Halifax studio. The company confirmed that development and operations on the game are also being wound down, contributing to the decision to shutter the studio entirely.
This move aligns with a broader pattern of restructuring that Ubisoft has pursued over the last several years. Rising development costs, uneven sales performance, and changing player habits have forced the publisher to reassess its studio footprint and long-term priorities.
Workers and Labor Groups Express Alarm
Labor organizations representing Ubisoft Halifax employees reacted strongly to the news, describing the closure as deeply troubling given how soon it followed the union’s certification. They have indicated that they are examining possible steps to defend the rights of affected workers and ensure that existing labor protections are upheld.
The situation has amplified concerns within the game development community about how vulnerable unionized teams may be during periods of corporate restructuring. While unionization is often viewed as a way to secure better working conditions, it does not guarantee protection from layoffs, particularly when companies are under financial pressure.
Another Chapter in Ubisoft’s Ongoing Cost-Cutting Drive
The closure of Ubisoft Halifax is not an isolated event. Over the past few years, Ubisoft has carried out multiple rounds of layoffs, closed or consolidated studios, and canceled several high-profile projects. These actions followed a string of releases that failed to meet sales expectations and contributed to declining revenues.
In response, the company has undertaken significant structural changes. One of the most notable moves came last year, when Ubisoft created a new business entity to oversee its core franchises, including Assassin’s Creed, Far Cry, and Rainbow Six. That entity includes a minority stake held by Tencent, reflecting Ubisoft’s increasing reliance on external investment and partnerships to stabilize its business.
These changes highlight the financial and strategic challenges facing large publishers in an industry marked by high production costs and intense competition.
From Longtail Studios to Ubisoft Halifax
The Halifax studio has a history that predates its time under the Ubisoft banner. It originated as part of Longtail Studios, which was founded in New York City in 2003 by Ubisoft co-founder Gérard Guillemot. Longtail later expanded into Canada, opening studios in Quebec and Halifax as the country emerged as a major hub for game development.
Longtail gained recognition for its work on the Rocksmith series, which stood out for its unique approach to teaching players how to play real instruments. The studio also contributed to a range of early mobile games and Nintendo DS titles.
Ubisoft acquired Longtail in 2015, rebranding its locations as Ubisoft studios. The Halifax team was then shifted toward mobile development, working on titles such as Assassin’s Creed Rebellion and Rainbow Six Mobile.
Past Union Efforts Cast a Long Shadow
The closure has revived memories of a failed unionization attempt at Longtail’s Quebec studio during the late 2000s. That effort ultimately collapsed amid claims that management responded with aggressive measures, including widespread layoffs attributed to economic conditions.
Both the Quebec and Halifax studios were eventually absorbed into Ubisoft, but the history has left a lasting impression among labor advocates. While Ubisoft has not acknowledged any connection between those earlier events and its current restructuring, the similarities have fueled skepticism among workers and organizers.
