Ubisoft has decided to close one of its studios located in Canada. This studio had formed a labor union last December. Ubisoft explained that this decision is part of a restructuring process that has been ongoing for two years.

The studio slated for closure is Ubisoft Halifax. It was working on mobile games for the Rainbow Six and Assassin's Creed franchises, with 71 employees on staff. Ubisoft Halifax began its push for unionization in June of last year and officially formed a union on December 18. They joined the Game & Media Workers Guild of Canada, a branch of CWA Canada.

Just about a month later, Ubisoft decided to shut down the studio. In a statement provided to Gamesindustry.biz, Ubisoft explained that this decision is part of the restructuring and cost-cutting procedures that have been carried out across various studios over the past two years. A Ubisoft representative stated, "Over the last 24 months, we have taken steps to streamline our operations, increase efficiency, and reduce costs," adding, "As part of this, we have made the difficult decision to close Ubisoft Halifax."

In fact, Ubisoft has been suffering from a chronic deficit and has continued efforts to resolve it since last year. Notably, in March, they established a joint venture with Tencent focusing on three flagship IPs: Assassin's Creed, Rainbow Six, and Far Cry. In October of this year, they also carried out restructuring affecting internal development studios, including Massive Entertainment, known for The Division.

Now, it has been decided that Ubisoft Halifax will be shut down. In response, CWA Canada stated that closing a company because of unionization is illegal and that they will demand relevant information from Ubisoft to understand the reason for the sudden closure. Furthermore, they emphasized that they will mobilize all legal means to protect their members.