Ubisoft Closes Unionized Halifax Studio, Cites Operational Streamlining

Ubisoft has announced the closure of its Halifax studio, impacting 71 positions, merely two weeks after the employees successfully formed a union. The company maintains that this decision is part of a broader strategy to streamline operations and enhance efficiency, asserting no direct link to the recent unionization efforts. This development has ignited strong reactions from the union, which has pledged to take all necessary legal steps to safeguard the rights of the affected workers and scrutinize the actual motives behind the studio's shutdown.

Just a fortnight ago, the workforce at Ubisoft Halifax, responsible for titles like Assassin's Creed Rebellion, achieved a significant milestone by voting 74% in favor of unionizing. This came after their initial filing for union recognition in June. However, this triumph was short-lived as Ubisoft declared the studio's closure shortly thereafter. According to a statement released by the publisher, this action is a continuation of company-wide initiatives over the past two years aimed at optimizing operations, boosting efficiency, and cutting expenses. The statement explicitly mentioned that 71 roles would be impacted by this difficult decision.

Carmel Smyth, who serves as the president of CWA Canada, the parent organization of the studio's newly formed union, expressed profound dismay at the news. She stated that the union would exhaust all legal avenues to ensure that the employees' rights are upheld and not compromised. Smyth emphasized the union's intention to hold Ubisoft accountable, demanding clear evidence that the closure is entirely unrelated to the workers' decision to unionize. She highlighted the broader implications for the affected employees, their families, the community of Nova Scotia, and Canadian video game enthusiasts, all of whom, she believes, deserve full transparency.

Ubisoft Halifax originated as a division of Longtail Studios, which was co-founded by Gérard Guillemot in 2003. Intriguingly, IGN reported in 2023 that Longtail's Quebec branch had previously attempted to establish one of North America's earliest game studio unions in 2008. This earlier endeavor, however, ultimately failed due to strong opposition from the company's management. The Halifax branch of Longtail Studios was eventually acquired by Ubisoft in 2015, subsequently focusing its development efforts on mobile games such as Assassin's Creed Rebellion and Rainbow Six Mobile.

The current situation at Ubisoft Halifax is not an isolated incident within the gaming sector. Last year, Rockstar faced similar criticism after dismissing over 30 developers who were involved in labor organizing for GTA 6. Despite Rockstar's claims of "gross misconduct" by these workers, the move sparked considerable internal and external protest, drawing scrutiny from parliamentary bodies. Ubisoft maintains that the Halifax studio's closure is disconnected from its unionization and instead forms part of its ongoing cost-reduction strategy, which has previously resulted in multiple studio closures, instances of "voluntary career transitions," and widespread layoffs. The company has affirmed its commitment to providing support to all affected team members through severance packages and career assistance.

The closure of Ubisoft Halifax, shortly after its employees unionized, casts a long shadow over the company's commitment to its workforce. While Ubisoft attributes the decision to broader operational restructuring and cost-cutting measures, the timing inevitably raises questions about the true motivations behind the shutdown. This event serves as a stark reminder of the ongoing tensions between corporate financial objectives and the growing movement for labor rights within the video game industry, prompting calls for greater transparency and accountability from major publishers.