The video game industry is facing difficult times, marked by thousands of layoffs, studio closures, and a bleak outlook. This contrasts with reports of record revenues expected by 2025, indicating growth in game production, project initiation, studio formation, revenue generation, and a burgeoning player base. However, the AAA sector is the most affected, with Ubisoft and Microsoft previously announcing hundreds of layoffs in the summer of 2026. Now, former Ubisoft employees’ dismissals have prompted remaining staff to unite in a strike to fight for their rights and those of their colleagues.
Video game industry workers find themselves in a precarious situation, facing unstable employment and uncertainty about their future. While artificial intelligence is a significant contributing factor, it’s not the sole cause. As game development costs, particularly in the AAA industry, escalate, companies must sell more units to cover expenses and achieve profitability. This is increasingly challenging due to the growing number of games and intensifying competition, even from indie studios.
Laid-off Ubisoft Barcelona Employees Spark Widespread Discontent, Leading to Over Two-Week Strike
The cost of game development has skyrocketed in recent years. While AAA games cost less than $50 million in the 2000s, they now cost four to five times more, with some exceeding $200 million. To recoup these costs and generate profits that satisfy companies, millions of units must be sold, which is not always achieved.
Companies like Ubisoft, with nearly 20,000 employees across over 40 subsidiaries worldwide, are experiencing a crisis and have resorted to laying off hundreds of workers. Now, these employees are striking to combat this unjust situation. A total of 51 workers, representing 28% of the total staff, and the surviving employees have decided to go on strike from June 30 to July 16, 2026.
Ubisoft Employees Demand Better Salaries, Real Promotion Opportunities, and 60% Remote Work
Employees will participate in the strike every Tuesday and Thursday afternoon during this period of just over two weeks. It remains to be seen if they can achieve their demands. This will be challenging, as the company has implemented numerous layoffs, and their requests might exceed what the company is willing to concede to avoid further issues at the Barcelona headquarters. Firstly, they are demanding the reinstatement of the 51 laid-off employees and, to prevent similar situations, they are requesting a minimum of five years of protection against future layoffs.
They also request a return to remote work, with 60% of their monthly tasks to be performed remotely. Furthermore, they demand that the company adhere to its internal promotion policies, as it appears they are not following their own rules. Finally, they are asking for a professional development agreement that includes salary improvements and social loans.
