Ubisoft Plans New Layoffs at Massive Entertainment, Makers of Avatar and The Division

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Ubisoft Restructures Massive Entertainment for Focus on The Division Franchise and New Innovative Project

Ubisoft has announced an organizational restructuring at Massive Entertainment, the studio behind The Division, Avatar, and Star Wars Outlaws, which is expected to lead to the dismissal of 55 employees. The proposal directly affects the Malmo and Stockholm teams and follows the conclusion of a voluntary departure program initiated last year. According to Ubisoft, the restructuring and new long-term planning provide greater clarity on the structure and capacity required to sustain the work of both studios, with a renewed focus on advancing the Snowdrop graphics engine and Ubisoft Connect service. With this reorganization, Massive Entertainment will primarily concentrate on The Division franchise, including developing The Division 3 and continuing support for The Division 2. This emphasis on the franchise aims to leverage Massive’s expertise and resources for its most successful property. The Division 3, officially announced in 2023, has not yet released any gameplay footage or trailers. However, Executive Producer Julian Gerighty stated that the new game will have an impact as significant as the original The Division upon its launch. In addition to The Division series, Massive Entertainment is also developing an unannounced project focused on innovation and technology, which the company plans to reveal in the future.

In an internal communication to employees, Ubisoft emphasized that the proposed changes are structural and strategic, unrelated to individual performance or the quality of completed work. The company reiterated that Massive Entertainment’s long-term direction remains unchanged: the studio will remain the primary global hub for The Division franchise and play a central role in the development of Snowdrop and Ubisoft Connect. According to the internal message, the restructuring process will begin with individual negotiations, and affected employees are being directly informed. Ubisoft has promised to provide support and adhere to local laws throughout this process.

Ubisoft’s New Operational Strategy Empowers Studios for Agile Development

These changes at Massive Entertainment occur amidst a period of instability for Ubisoft as a whole. In late 2023, Ubisoft announced the creation of Vantage Studios, a new subsidiary partially controlled by Tencent, which assumed supervision of major franchises like Assassin’s Creed, Rainbow Six, and Far Cry. Tencent holds a 25% stake in this new entity and acts in an advisory capacity, while final creative and commercial decisions remain the responsibility of co-CEOs Christophe Derennes and Charlie Guillemot. The French publisher maintains that these changes are part of a broader strategy to transition towards a less centralized operational model. The goal is to grant greater creative autonomy to the teams responsible for each brand, thereby making development more agile and sustainable in an increasingly competitive market.

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