I don’t believe any serious person really thought 2025 would magically be different from 2024 in terms of video game industry layoffs, but if you are one of those people, I’m sorry. Today Ubisoft let nearly 200 workers go, closing yet another studio in the process, and Dauntless developer Phoenix Labs functionally turned to ash.
Ubisoft continued its valiant quest to “enhance operational efficiency and maximize value creation,” whatever that means, by laying off 185 workers, including the team at Ubisoft Leamington, which assisted on games like Star Wars Outlaws, The Division, and Far Cry 5. The company has also begun “targeted restructurings” at Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections. This follows two other studio closures in Osaka and San Francisco just last month on the back of XDefiant's shutdown, as well as the decision to “ramp down” production in Sydney – all of which resulted in nearly 300 layoffs.
Since late last year, rumors have swirled of a potential buyout from Tencent, which currently owns nine percent of Ubisoft. However, according to Reuters, Ubisoft has its sights set on a deal that would see the Guillemot family, which founded the company, retain control. Amid all of this, Ubisoft has faced “softer than expected” sales of blockbusters like Star Wars Outlaws and multiple employee walkouts over issues like fair pay and return-to-office mandates.
Meanwhile, Phoenix Labs is against the ropes and a punch or two from going down, with the studio saying that the lion’s share of its workers are on the chopping block.
"Today is another difficult day at Phoenix Labs,” the company wrote on LinkedIn. “We have made the tough decision to part ways with the majority of the studio as part of unfortunate but necessary changes to our operations. We recognize and deeply appreciate the contributions of every individual impacted. Their talent, dedication, and creativity have left an indelible mark on our company and our games."
In 2023, Phoenix Labs was acquired by Forte Labs, a blockchain company. Last year, Game Developer reported that Forte cracked down on communication inside and outside of Phoenix Labs, going so far as to keep potential employees in the dark as to who actually owned the studio. That really smart and normal plan is evidently going well.
In January alone, we’ve seen layoffs at additional studios like Godfall developer Counterplay – which may or may not still be open – Splash Damage, and Piranha.
As a result of myriad concerns with which you’re likely familiar, January has felt like it’s lasted a year, which if nothing else is less than two or three years. February, by virtue of having fewer days in it than January, can’t possibly feel longer. So that’s something, unless February somehow turns out to be even more grueling than January, in which case it isn’t.
Update 1/29/25: A previous version of this story included a screenshot that was taken by GamesRadar's Will Sawyer, not Ubisoft. We apologize for the error and have swapped out the screenshot.
