The video game industry is facing another wave of restructuring, with major publisher Ubisoft announcing the closure of its Halifax studio. This decision comes just weeks after the studio's employees successfully formed the first Ubisoft union in North America, raising immediate questions about corporate motives and worker rights in a rapidly consolidating market. The move is part of a broader, two-year cost-cutting initiative by the French publisher, which has seen studio closures, project cancellations, and widespread layoffs. This article examines the closure of Ubisoft Halifax, the context of its recent unionization, and the ongoing tension between corporate streamlining and labor organization in the tech sector.
Ubisoft Announces Halifax Studio Closure Amid Restructuring
Ubisoft confirmed the closure of its Halifax studio on January 7, 2026, stating that 71 positions were impacted. The publisher framed the decision as a difficult but necessary part of a company-wide effort to "streamline operations, improve efficiency, and reduce costs" that has been ongoing for 24 months. In a statement, the company emphasized its commitment to supporting affected employees with comprehensive severance packages and career transition assistance. The studio, known for its work on mobile titles like Assassin's Creed: Rebellion and Rainbow Six Mobile, will see its operations wound down as part of the closure.
Ubisoft's Recent Restructuring Context:
- Duration: Part of a 24-month (two-year) company-wide cost-cutting plan.
- Recent Actions: Studio closures, widespread layoffs, and project cancellations.
- Strategic Shift: Formation of a new business entity for core franchises (Assassin's Creed, Far Cry, Rainbow Six) with a 25% stake owned by Tencent.
- Cited Reason for Halifax Closure: Declining revenues from Assassin's Creed: Rebellion.
Unionization Effort Culminated Weeks Before Closure
The timing of the closure is particularly significant, as it follows the official certification of a union at the Halifax studio just three weeks prior. In a vote held in late 2025, 74% of eligible employees—including producers, programmers, designers, artists, researchers, and testers—voted in favor of unionizing with the Game & Media Workers Guild of Canada, part of the Communications Workers of America (CWA) in Canada. This union marked a historic first for Ubisoft in North America, representing a successful organization drive after a similar attempt at the studio's predecessor, Longtail Quebec, failed in 2008-2009 amid allegations of union-busting.
Studio Closure & Unionization Timeline:
- June 2025: Employees at Ubisoft Halifax file for unionization.
- Late 2025: 74% of eligible employees (61 of 71 workers) vote to unionize with the Game & Media Workers Guild of Canada/CWA.
- ~December 15, 2025: Union is officially certified.
- January 7, 2026: Ubisoft announces closure of Halifax studio, affecting all 71 positions.
Ubisoft and Union Offer Conflicting Perspectives on Motives
Ubisoft has firmly stated that the studio closure is unrelated to the unionization effort, attributing it solely to broader financial restructuring and declining revenues from Assassin's Creed: Rebellion. However, representatives from the newly formed union and CWA Canada have expressed deep skepticism and devastation. Carmel Smyth, President of CWA Canada, stated the union would "pursue every legal recourse" to ensure workers' rights were respected and not infringed upon, demanding proof that the closure was disconnected from the union vote. This conflict echoes recent industry controversies, such as Rockstar's dismissal of over 30 GTA 6 developers involved in labor organization last year.
The Studio's History and Industry-Wide Trend of Consolidation
Ubisoft Halifax began as a branch of Longtail Studios, founded in 2003 by Ubisoft co-founder Gérard Guillemot. Ubisoft acquired Longtail in 2015, rebranding it to focus on mobile game development. The closure is not an isolated incident but part of a persistent trend for Ubisoft, which has engaged in significant cuts, studio shutdowns, and project cancellations following a series of disappointing releases and falling revenues. In a notable shift, the company recently created a new business entity with Tencent taking a 25% stake to manage major franchises like Assassin's Creed, Far Cry, and Rainbow Six, signaling a strategic pivot and external partnership to stabilize its core business.
Historical Precedent at Longtail/Ubisoft:
- 2008-2009: A unionization drive at Longtail's Quebec studio (a predecessor to Ubisoft Halifax) ultimately failed.
- Alleged Cause: Sources claimed union-busting efforts by management, including mass layoffs attributed to economic conditions.
- 2015: Ubisoft acquires Longtail Studios, renaming its branches, including Halifax.
Implications for Labor and the Future of Game Development
The closure of Ubisoft Halifax so soon after unionization sets a concerning precedent for labor movements within the tech and gaming industries. It highlights the vulnerability of workers even after successfully organizing and raises questions about the effectiveness of current labor protections in the face of corporate restructuring. The outcome of any legal challenges pursued by CWA Canada will be closely watched, as it could influence future unionization efforts across North America. For Ubisoft, the move may achieve short-term financial goals but risks further reputational damage and employee morale issues at a time when the company is seeking to regain its footing in a competitive market.