Ubisoft announced the Ubisoft Halifax closure, impacting 71 employees, just days after staff successfully formed the company’s first North American labor union. This abrupt decision, citing ongoing streamlining and cost-reduction efforts, raises questions about the future of labor organizing within the volatile gaming industry.
The studio, previously known as Longtail Studios Halifax before its 2015 acquisition, was primarily focused on mobile titles like Rainbow Six Mobile and Assassin’s Creed Rebellion. Its closure marks a significant event, especially given the timing, as reported by Gamesindustry.biz, which noted the union’s formation only days prior.
This move follows a series of rolling cutbacks at Ubisoft, including job losses at RedLynx and Massive last year, and aligns with broader trends of gaming industry layoffs. The company’s statement emphasized a commitment to supporting affected team members with severance packages and career assistance, yet the timing remains a point of contention and discussion.
The unexpected timing of unionization and closure
The formation of Ubisoft Halifax’s union represented a milestone for labor rights within the Canadian gaming sector. Staff had been pursuing unionization since June 2025, culminating in success just before the closure announcement. This rapid sequence of events fuels debate among industry observers and labor advocates, with some citing a recent Canadian Labour Congress report on the challenges faced by newly unionized workplaces.
For many, the swift closure after unionization appears to send a chilling message to other workers considering similar actions. While Ubisoft stated the closure was part of ongoing cost-reduction strategies over the past two years, the immediate aftermath of union success casts a shadow over the company’s stated intentions. The studio had been a part of Ubisoft for nearly a decade, contributing to key mobile franchises.
Ubisoft’s restructuring amid a challenging market
Ubisoft’s decision reflects a broader industry trend of consolidation and cost-cutting, as many large publishers navigate a post-pandemic slowdown and shifting market dynamics. The company recently spun off its main franchises into a separate business backed by Tencent, indicating a strategic pivot towards optimizing its core assets and reducing overheads.
According to a recent report on the tech sector, global gaming layoffs surged in 2024, affecting thousands of developers and support staff across various companies. This economic climate adds another layer of complexity to the Ubisoft Halifax situation, placing it within a wider narrative of an industry grappling with sustainability and evolving business models.
The closure of Ubisoft Halifax serves as a stark reminder of the precarious balance between corporate restructuring, market pressures, and employee rights. As the gaming industry continues to evolve, the interplay between labor movements and business decisions will likely remain a critical area of focus, influencing future development and talent retention strategies.
