Union Challenges Ubisoft After Sudden Closure of Halifax Studio

The union representing workers at Ubisoft’s Halifax studio has filed a formal labour complaint following the abrupt closure of the facility on January 7, 2024. The sudden decision resulted in the layoff of 71 employees just weeks after most of the team received union certification. CWA Canada, the union advocating for these workers, is demanding that Ubisoft provide detailed justification for the closure, asserting it was an attempt to undermine the union.

Ubisoft has attributed the Halifax studio’s shutdown to ongoing financial difficulties, insisting that the move is unrelated to the recent unionization efforts. CWA Canada has contested this claim, arguing that the timing raises significant concerns about the company’s intentions. In a statement, CWA Canada president Carmel Smyth noted that the union’s priority is to secure employment opportunities for the affected workers, either remotely or at other Canadian locations.

The meeting between the union and Ubisoft on Wednesday was described by Smyth as “disappointing,” stating that Ubisoft provided little to no information regarding the financial circumstances that led to the closure. Following this initial discussion, Ubisoft has committed to reconvene on Friday to potentially disclose financial data that could substantiate its claims of economic distress.

The Halifax closure is part of a broader trend of layoffs affecting the global gaming industry. Since 2022, approximately 45,000 workers have lost their jobs across various gaming companies worldwide, according to a database compiled by industry analyst Amir Satvat of Tencent Games. This wave of layoffs comes on the heels of a hiring surge during the pandemic, where many companies expanded their workforce in anticipation of increased gaming demand that ultimately did not translate into sustained profits.

Ubisoft has faced similar challenges at other locations, having downsized studios in London, San Francisco, and Osaka, Japan. Recently, the company also laid off nearly 30 employees at its mobile game studio in Abu Dhabi. From employing around 21,000 people in 2022, Ubisoft’s workforce has now diminished to 17,000 as the company grapples with its financial situation.

Despite these challenges, Ubisoft has benefited from Canada’s favorable tax credit system for the multimedia and gaming sector. Between 2020 and 2024, Ubisoft reportedly received over €605 million (approximately $977 million CAD) in tax credits. In Nova Scotia alone, the provincial government confirmed that Ubisoft received $10.57 million through the Digital Media Tax Credit from 2017 to 2025, with an additional $2 million approved in January.

In light of the recent layoffs, CWA Canada is advocating for stricter conditions on corporate subsidies, including tax credits, to prevent companies from capitalizing on public funds without ensuring job security for employees. In Quebec, where the majority of Ubisoft’s Canadian workforce is located, a similar trend of job cuts has been observed. According to reports, studios in Montreal have cut nearly 500 jobs over the past two years.

The challenging conditions in the gaming industry have sparked a renewed push for unionization among workers. Campaigns have emerged across Canada, including efforts by Gaming Workers Unite in Quebec, although progress has been slow. The recent layoffs at Ubisoft Halifax reflect a growing urgency among workers to seek collective bargaining power.

Former employee and union representative Jon Huffman remarked that the drive for unionization intensified after the shutdown of Alpha Dog, a Halifax-based studio owned by Microsoft, in 2024. The situation underscores the precarious nature of employment within the gaming industry, prompting workers to seek stronger protections through union representation.

As Ubisoft prepares for its upcoming meeting with CWA Canada, the future of the laid-off employees remains uncertain. The union continues to press for transparency and accountability from the company, as the fallout from the Halifax closure reverberates through the industry.