Ubisoft Announces Layoffs at The Division and Avatar: Frontiers of Pandora Studio, Massive Entertainment

Ubisoft is laying off workers at its Swedish studios, Massive Entertainment and Ubisoft Stockholm, as part of its cost-cutting drive. The restructuring, which comes after a voluntary redundancy scheme, could impact approximately 55 roles at the two subsidiaries, Ubisoft said. The company said the cuts were “forward-looking and structural” and unrelated to employee performance.

Ubisoft Announces Layoffs 

In a statement, shared with IGN, Ubisoft said it informed employees at Malmo-based Massive and Ubisoft Stockholm about the proposed organisational restructure on Tuesday.

The measure follows the completion of a “Voluntary Leave Program” that began in fall 2025. Ubisoft said it had finalised a long-term roadmap and completed staffing and appointment process, and now had “clearer visibility into the structure and capacity required to support the two studios' work and sustainably over time”.

“These proposed changes are forward-looking and structural, they are not related to individual performance, recent deliveries, or the quality of the work produced by the teams,” Ubisoft said.

Massive to Focus on The Division Franchise

Massive Entertainment, the studio behind Star Wars Outlaws and Avatar: Frontiers of Pandora, both underperforming games based on external IP, will now focus on The Division franchise. The studio is currently working on The Division 3. In a recent interview, the franchise's executive producer Julian Gerighty said that the follow-up to The Division 2 was in production.

Massive is also working on The Division 2: Survivors, a survival extraction mode for The Division 2 set to launch in 2026.

“The long-term direction for the studios remains unchanged, and we will continue to serve as the global home and lead for to The Division franchise, move forward with an unannounced innovative tech project with a refined team setup, and play a central role in the development of Snowdrop and Ubisoft Connect,” Ubisoft said.

The latest round of layoffs comes a week after Ubisoft announced it was shutting down its Halifax studio. The cuts impacted 71 jobs at the mobile game developer.

In October, Ubisoft launched Vantage Studios as part of a larger restructuring backed by Tencent. Vantage, a new subsidiary led by co-CEOs Christophe Derennes and Charlie Guillemot, will be home to the French company's three biggest franchises: Assassin's Creed, Far Cry, and Rainbow Six.