Ubisoft’s Toronto studio has cut 40 jobs, marking the latest step in a sweeping restructuring effort that could ultimately affect up to 18% of the company’s global workforce. The layoffs, confirmed in a statement to industry outlets, reduce the studio’s headcount by roughly 8%, bringing its total from around 500 employees to just over 450.

The decision follows a series of high-profile cancellations and delays, including the shelving of the Prince of Persia: Sands of Time* remake—a project that had generated significant anticipation. Despite these setbacks, Ubisoft Toronto emphasized that its ongoing Splinter Cell reboot remains active, though progress has yet to be publicly detailed. The studio will also continue to contribute to Ubisoft’s broader ecosystem, including support for Rainbow Six Siege.

This latest round of layoffs underscores the financial pressures reshaping Ubisoft’s operations. The company has faced criticism from unions in both Canada and France, where workers staged a three-day strike in mid-February to protest the restructuring. In response, Ubisoft has pledged severance packages and career assistance for affected employees, framing the cuts as necessary to sustain long-term stability.

What’s next for Ubisoft Toronto?

  • Splinter Cell reboot: Confirmed to still be in development, though no official timeline or gameplay details have been released.
  • Rainbow Six Siege: The studio will continue providing development support, though the extent of its involvement remains unclear.
  • Workforce impact: The 40 layoffs represent the first major reduction at the Toronto studio, with potential for further cuts as restructuring unfolds.

The move comes as Ubisoft shifts its focus toward external hires to lead creative initiatives, including the appointment of Yves Guillemot’s son as the first head of a newly formed creative house. While the company has signaled a commitment to innovation, the layoffs and cancellations have left some industry observers questioning its long-term strategy.

For now, the Toronto studio’s future hinges on whether its remaining projects—particularly Splinter Cell—can deliver results amid tightening budgets. The cancellation of Prince of Persia* and delays to other remakes have already eroded player trust, and the upcoming months will reveal whether Ubisoft can regain momentum without further workforce reductions.