French developer Ubisoft has announced the layoffs of 124 employees from its business administration and IT teams.
The layoffs are part of the company’s efforts to “streamline operations and enhance collective efficiency.” 98 of the employees were employed at the company’s offices in Canada, primarily for the Hybride VFX Studio and global IT team. This figure represents around 2% of the company’s Canadian workforce. All affected employees will be given extended benefits and severance packages, and no members of Ubisoft’s production teams were affected.
“Ubisoft is proceeding with a collective dismissal in its Montreal establishment within the framework of a reorganization of its production support services across Canada, by consolidating these functions Canada wide, Ubisoft will be able to optimize its resources to be more sustainable in the long term,” wrote the company, in a letter to the Quebecoise government.
A year of layoffs
In a statement to Kotaku, the company went on to say “These are not decisions taken lightly and we are providing comprehensive support for our colleagues who will be leaving Ubisoft during this transition. We also want to share our utmost gratitude and respect for their many contributions to the company. This restructuring does not affect our production teams.”
Ubisoft is one of the world’s biggest mobile game makers, attracting the attention of Chinese gaming giant Tencent, which acquired 49% of parent company Guillemot Bros last year. However, the company has lost over one thousand employees over the past 13 months, both due to layoffs and simply not replacing staff who decide to seek employment elsewhere. The cost-cutting measures follow continued difficulties in the development of big budget projects such as Skull and Bones and Beyond Good and Evil 2. However, a member of staff speaking to Kotaku hinted that the troubled times may not be over.
“Who knows if there will be more cuts down the line? It’s nerve-wracking not to know if your job will be secure or not.”
Last month, Ubisoft closed its London studio following the loss of Hungry Shark development duties.
