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The Division 3: Ubisoft Confirms Sequel Status Amidst Massive Entertainment Layoffs
Ubisoft has confirmed another round of layoffs, this time striking its Swedish operations. Massive Entertainment and Ubisoft Stockholm will lose 55 roles combined as the publisher continues its aggressive restructuring plan in 2026.
Massive Entertainment Layoffs Explained
The publisher announced the decision today, citing the need for “structural” changes. These cuts follow a “Voluntary Leave Program” launched in late 2025, which reportedly failed to reduce headcount enough to meet Ubisoft’s targets.
Ubisoft states the decision is not a reflection of individual performance or the quality of recent releases like Star Wars Outlaws. Instead, the move aims to streamline operations across the two studios.
Impacted employees in Malmö and Stockholm are currently entering consultation periods. Ubisoft has promised support “with care and respect” in line with local Swedish labor regulations.
Ubisoft has announced staff cuts at its Swedish studios, with 55 jobs expected to be lost at Massive Entertainment and Ubisoft Stockholm.https://t.co/cZJL6327aQ
— GamesIndustry (@GIBiz) January 13, 2026
The Division 3: Safe and Active
Despite the reduction in workforce, the future of The Division remains secure. Ubisoft clarified that Massive Entertainment will continue to lead the franchise. Development on The Division 3 is currently a priority, with producers recently claiming the sequel is “shaping up to be a monster.”
The studio also retains its central role in developing the Snowdrop engine. This tech powers major titles including Avatar: Frontiers of Pandora and the upcoming Splinter Cell remake.
Work also continues on The Division 2, with the new “Survivors” extraction mode still on the roadmap. Ubisoft Stockholm will press ahead with an unannounced project focused on cloud technology.
Learn why The Division 3 is considered a monster project by the Producer!
Ubisoft’s Rough Start to 2026
This news marks the second major closure or reduction for Ubisoft in January 2026 alone. Just last week, the company shuttered Ubisoft Halifax, resulting in 71 job losses.
That decision drew criticism as it occurred shortly after the studio voted to unionize. Ubisoft maintains that the Halifax closure was purely financial, part of a two-year strategy to cut costs and improve efficiency company-wide.
The industry-wide contraction shows few signs of slowing down, even as major projects like The Division 3 move forward.
Verdict: A Leaner Massive?
Massive Entertainment is arguably Ubisoft’s most critical studio right now, holding the keys to Star Wars, Avatar, and The Division. While The Division 3 appears safe, these cuts suggest Ubisoft is tightening the belt around even its premier teams.
Do you think reducing staff at major studios will impact the quality of upcoming AAA titles?
A video game enthusiast ever since I first got my hands on a Game Boy. Over the years, I've played many different games across various genres, discovering hidden gems and niche titles along the way. I'm also passionate about technology, always up-to-date with the latest news and insight in the PC and Console market. Ready to share and bring you the latest news !
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