Ubisoft is shuttering Red Storm Entertainment as part of a massive cost-cutting initiative, eliminating 105 jobs from the studio that created Rainbow Six and Ghost Recon. The North Carolina-based studio, founded in 1996 to develop Tom Clancy games, will continue operating but only on engine development and support services.

This closure follows a pattern of Ubisoft's aggressive restructuring, which includes cutting €500 million in fixed costs between 2023 and 2028. Red Storm had been developing Heartland, a Division spin-off cancelled in 2024, and a Splinter Cell VR game axed in 2022. The studio's pivot away from game development reflects Ubisoft's broader strategy of reducing its workforce and streamlining operations.

The Red Storm closure is the latest in a series of Ubisoft layoffs that have affected thousands of employees across multiple studios. With 1,500 headcount reductions in 2025 alone, the French publisher faces internal unrest, including strikes by workers living under constant uncertainty about their jobs.