Union Demands Answers from Ubisoft Following Halifax Studio Closure

The union representing workers laid off by Ubisoft in Halifax is demanding more information and job opportunities following the unexpected closure of the studio. On January 7, 2024, Ubisoft shut down its Halifax operation, resulting in the layoff of 71 employees, just three weeks after the majority of the team had secured union certification. The company has attributed the closure to financial difficulties rather than the recent unionization efforts.

CWA Canada, the union representing the affected workers, announced on Tuesday that it has filed a labour complaint against Ubisoft. The union argues that the closure was aimed at undermining the newly formed union and is requesting that Ubisoft provide evidence supporting its claims of financial distress.

The Halifax studio’s closure is part of a broader trend of layoffs impacting the global gaming industry, which has faced significant financial challenges in recent years. During the pandemic, gaming companies expanded their workforce to meet increasing demand, but many of these investments have not translated into sustained profitability. According to a database compiled by industry analyst Amir Satvat of Tencent Games, approximately 45,000 workers have been laid off in the gaming sector worldwide since 2022.

In a meeting with Ubisoft on Wednesday, union representatives sought further clarification regarding the studio’s closure. CWA Canada president Carmel Smyth expressed disappointment with the outcome, stating that Ubisoft provided “nothing” in terms of justification. However, Ubisoft has committed to another discussion on Friday, during which it may share financial details that could substantiate its claims.

The union’s primary objective is to secure employment for the laid-off workers, either at Ubisoft remotely or in other Canadian locations. Smyth also raised concerns over the treatment of employees on parental leave, who are reportedly not eligible for full severance payments, calling this situation “incredibly unfair.”

Ubisoft has faced similar challenges in other locations, with studio closures and layoffs occurring in cities such as London, San Francisco, and Osaka. Recently, nearly 30 employees were laid off at a mobile game studio in Abu Dhabi, United Arab Emirates. The company’s workforce has shrunk from approximately 21,000 employees in 2022 to around 17,000 currently.

As financial pressures mount, Ubisoft has also shifted some of its key titles to a subsidiary named Vantage Studios, in which Chinese tech giant Tencent holds a 26 percent stake. In November, Ubisoft halted trading and delayed the announcement of its financial results, with its shares now valued at about half of what they were a year ago.

Ubisoft benefits from Canada’s substantial tax credit system for the multimedia and gaming sector. The company has received over 605 million euros (approximately $977 million CAD) in tax credits from Canada between 2020 and 2024. In Nova Scotia, it has received $10.57 million through the Digital Media Tax Credit from 2017 to 2025, with an additional $2 million approved in January.

In response to the Halifax studio’s closure, CWA Canada has called for stronger regulations on corporate subsidies, including tax credits, to ensure that companies do not take advantage of government support. The situation in Québec, which employs the majority of Ubisoft’s Canadian workforce, has seen similar job cuts despite being a significant hub for the gaming industry. Reports indicate that Montréal studios have laid off nearly 500 employees over the past two years, notwithstanding a provincial multimedia tax credit expenditure of $477 million in 2025, up from $310 million in 2020.

These ongoing layoffs have spurred unionization efforts among video gaming workers across Canada, where most are not unionized. The group Gaming Workers Unite has initiated campaigns, particularly in Québec, aiming to unionize studios. Currently, Bethesda Game Studios remains the only studio in Canada with a unionized workforce. In a notable case, employees at Keyword Studios in Edmonton voted to unionize in 2023 but were laid off later that same year.

The circumstances surrounding the Halifax studio closure have intensified discussions about workers’ rights and corporate responsibility within the gaming industry’s evolving landscape.