Ubisoft has announced the closure of its Halifax studio, a move that affects 71 employees just two weeks after workers at the location voted to unionize. The shutdown comes as Ubisoft pursues broader cost-cutting measures and operational restructuring, impacting not only the local workforce but also raising questions within the Canadian gaming industry. Employees and industry observers contend with timing that coincides closely with the studio’s successful unionization bid, sparking concerns over labor relations. While Ubisoft maintains that the closure is unrelated to union activities, the event intensifies dialogue about the connection between worker organization efforts and company decisions. The news also resonates with both the local economy in Nova Scotia and the broader community of Canadian game developers, who follow the outcome closely.
When Ubisoft Halifax first emerged from Longtail Studios in 2015, it was seen as a promising addition to Canada’s game development landscape, contributing to mobile games like Assassin’s Creed Rebellion and Rainbow Six Mobile. Other reports previously highlighted efforts at Longtail’s Quebec branch to unionize in 2008, a process that ultimately ended under company pressure. In recent years, however, discussion around labor rights in the gaming sector has intensified, with similar cases occurring at large companies like Rockstar. Ubisoft’s prior rounds of layoffs and studio closures have generally been attributed to ongoing cost optimization, and the company continues to state that these actions are not directed at unionized workers. Nonetheless, as layoffs and studio reductions remain prevalent, tension grows between workforce advocacy and corporate restructuring.
What Led to Ubisoft Halifax’s Shutdown?
According to Ubisoft, the decision to close the Halifax studio is rooted in a company-wide strategy to streamline operations, increase efficiency, and lower expenses. Referring to activities carried out over the past two years, the publisher stated:
“Over the past 24 months, Ubisoft has undertaken company-wide actions to streamline operations, improve efficiency, and reduce costs,”
The closure is described as part of these broader efforts, rather than a direct response to the recent unionization of studio employees.
How Are Workers and Unions Responding?
The studio’s workforce, represented by CWA Canada, expressed disappointment and concern, viewing the closure as a significant loss for employees and the regional industry. Union representatives plan to pursue every available legal avenue to protect the affected workers’ rights. CWA Canada president Carmel Smyth emphasized:
“We will pursue every legal recourse to ensure that the rights of these workers are respected and not infringed in any way,”
The union has requested clarity from Ubisoft about how the closure decision was made and whether it was influenced in any way by labor organizing.
Does the Closure Reflect a Broader Trend in the Industry?
Layoffs and studio closures have become recurring themes within the game development world, especially for companies undergoing significant changes to their business models. Ubisoft has joined other major publishers in reducing headcount and shuttering offices, most recently introducing “voluntary career transitions” for some employees. Similar controversies have arisen at other companies where staff involved in unionization efforts were later impacted by cuts, leading to skepticism over the motivations behind such decisions and drawing attention to the balance between operational needs and workers’ rights.
The decision weighs heavily on employees, communities, and the industry amid ongoing conversations about labor and business priorities. As game development remains a volatile environment, both workers and management face pressures that stretch beyond a single studio or company. Ubisoft’s assurances of severance support and career assistance may mitigate some immediate effects, but the event amplifies questions about the future of unionization and labor advocacy in tech-driven creative fields. For those following similar workplaces or evaluating career moves, this situation highlights the complexities surrounding labor actions and organizational restructuring in competitive markets like video gaming. Workers, advocates, and employers will likely continue to assess the impact of such closures on both local economies and industry standards.
