Eidos Montreal has announced the layoff of 124 employees as of March 30, 2026, a move that underscores the studio’s ongoing challenges in adapting to changing project needs. This decision comes on the heels of the departure of David Anfossi, a significant figure in the organization.

The layoffs are attributed to evolving requirements across production and support teams, indicating a strategic shift within the studio. This is not the first time Eidos Montreal has faced workforce reductions; the studio previously laid off 75 employees in March 2025 and 97 in January 2024, highlighting a troubling trend of instability.

In recent years, Eidos Montreal has also had to cancel a new Deus Ex game, a franchise that has historically been a cornerstone of its portfolio. Despite these setbacks, the studio successfully released Marvel’s Guardians of the Galaxy in 2021, which was well-received by both critics and fans.

Currently, Eidos Montreal is involved in the development of Grounded 2 and Fable, but the specific details of these projects remain unclear. The studio’s ability to navigate these changes will be crucial as it seeks to regain its footing in a competitive industry.

In an official statement, Eidos Montreal expressed, “Today is a difficult day for our studio and reflects the need to adapt and concentrate efforts where Eidos Montréal can be most effective.” This sentiment underscores the challenges that many game development studios face in a rapidly evolving market.

Furthermore, the studio acknowledged Anfossi’s contributions, stating, “We thank David for his contributions and wish him the best in his future endeavors.” However, it remains uncertain whether his departure was voluntary or a result of the layoffs.

Details remain unconfirmed regarding the future direction of Eidos Montreal and how these layoffs will impact ongoing projects. The studio’s history of layoffs since 2023 raises questions about its long-term sustainability and strategic vision.

The gaming industry continues to grapple with economic pressures and shifting consumer preferences, making it imperative for studios like Eidos Montreal to adapt swiftly. As the landscape evolves, the studio’s next steps will be closely watched by industry stakeholders and fans alike.

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In a significant shift within the gaming industry, Ubisoft has announced the termination of game development at Red Storm Entertainment, leading to the loss of 105 jobs. Founded in 1996 by Tom Clancy, Red Storm has been a pivotal player in the development of games based on Clancy’s works, including iconic titles like Rainbow Six and Ghost Recon.

Ubisoft’s decision comes as part of a broader global cost-saving strategy aimed at reducing fixed costs by an additional €200 million over the next two years. This restructuring has already seen multiple game cancellations and studio closures, with Red Storm’s most recent project, The Division Heartland, being scrapped in 2024.

Despite the layoffs, Red Storm will continue to operate in a support role, focusing on IT and the Snowdrop engine. This pivot marks a significant departure from its historical role as a developer of major titles within the Tom Clancy franchise, having last released a Tom Clancy game, Future Soldier, in 2012.

Red Storm had previously faced layoffs in July 2025 and August 2024, indicating ongoing challenges within the studio. The recent job cuts are part of Ubisoft’s larger restructuring plan, which will see its creative teams restructured into autonomous “creative houses.” Marie-Sophie de Waubert, a spokesperson for Ubisoft, stated, “Each Creative House will have allocated resources, and they will have the means to define and to develop their roadmap.”

In response to the layoffs, a Ubisoft source confirmed that departing employees will be offered comprehensive support, including severance packages, to assist them during this transition. This move reflects the company’s recognition of the impact these layoffs will have on its workforce.

As Ubisoft continues to navigate this challenging landscape, observers are left to ponder the future of the company and its remaining studios. The gaming industry is witnessing a significant transformation, with many companies reevaluating their strategies in light of economic pressures and changing market dynamics.

Details remain unconfirmed regarding the specific future projects for Red Storm in its new support role. However, the studio’s historical significance and contributions to the gaming community cannot be overlooked, as it has played a crucial role in shaping the landscape of tactical shooters.

As the dust settles from these layoffs, the broader implications for Ubisoft and the gaming industry as a whole will continue to unfold, raising questions about the sustainability of current business models in an increasingly competitive environment.

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