Ubisoft Shutting Down San Francisco and Osaka Studios, Major Layoffs Expected

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  • Ubisoft Shutting Down San Francisco and Osaka Studios, Major Layoffs Expected

    Nearly 300 employees are being laid off.
    The Ubisoft logo.

    Today, Ubisoft announced that they are shutting down their online competitive shooter XDefiant. As a result of this shutdown, Ubisoft is also shutting down the XDefiant production studios in San Francisco and Osaka. Some layoffs will also take place in their Sydney location. This will lead to about 277 employees losing their jobs. Half of the XDefiant team will be moved to other roles elsewhere within Ubisoft.

    News of the sunsetting of XDefiant and the layoffs came from an email sent to Ubisoft employees from chief studios and portfolio officer Marie-Sophie de Waubert. The email was shared online for the public to also read. Notably, the email says that 143 people will be "departing" from the San Francisco studio and another 134 people are "likely to depart" from the Osaka and Sydney locations.

    Today, I wanted to share with you that we’ve made the difficult decision to discontinue development on XDefiant.

    Despite an encouraging start, the team’s passionate work, and a committed fan base, we’ve not been able to attract and retain enough players in the long run to compete at the level we aim for in the very demanding free-to-play FPS market. As a result, the game is too far away from reaching the results required to enable further significant investment, and we are announcing that we will be sunsetting it.

    Concretely, that means that as of today, new downloads, player registrations and purchases will no longer be available. Season 3 will still launch, and the servers will remain active until June 3, 2025, out of appreciation for both our dev teams who worked on it and for XDefiant’s active players.

    Unfortunately, the discontinuation of XDefiant brings difficult consequences for the teams working on this game. Even if almost half of the XDefiant team worldwide will be transitioning to other roles within Ubisoft, this decision also leads to the closing of our San Francisco and Osaka production studios and to the ramp down of our Sydney production site, with 143 people departing in San Francisco and 134 people likely to depart in Osaka and Sydney. To those team members leaving Ubisoft, I want to express my deepest gratitude for your work and contributions. Please know that we are committed to supporting you during this transition.

    Developing Games-as-a-Service experiences remains a pillar of our strategy, and we’ve achieved significant successes, like Rainbow Six, The Crew, and For Honor, among others. It’s a highly competitive market, and we will apply the lessons learned with XDefiant to our future live titles.

    Globally, we are determined to take the necessary steps to put the company back on a path to growth, innovation and creativity and make sure we can set you up for success. This means continuing to radically evolve our mindset for Production and Business practices, which we will share more about soon, and doing targeted restructuring when necessary. I know that the situation brings questions and expectations, and we will share regular and transparent updates.

    My sincere thanks for your continued dedication as we navigate these trying times together.​
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