Ubisoft closes Halifax game studio shortly after workers unionize, received $11 million in tax credits

A first for workers’ rights in the video game industry quickly turned into a nightmare as a recently unionized studio in Halifax has abruptly shut down.

On Dec. 18, around 60 workers at Ubisoft Halifax voted to unionize, making it the first studio under Ubisoft’s international umbrella to do so in North America. This comes after 10 years of business in the mobile games industry, with their biggest product being the spin-off mobile game Assassin’s Creed Rebellion. Employees at the studio joined CWA Canada Local 30111.

On Wednesday, Ubisoft announced that the Halifax studio would be closing its doors for good. In a statement retrieved by CityNews, the company says the closure is part of its process of restructuring, which it says began two years ago. Unionization efforts at the studio began in June 2025. Ubisoft Halifax was originally founded as Longtail Studios Halifax in 2010 before being acquired by the international video game company in 2015.

In an emailed press release, CWA Canada president Carmel Smyth says the union will not back down from protecting the rights of the workers axed by the company shortly after joining the union.

“Today’s news is devastating,” Smyth said Wednesday. “We will pursue every legal recourse to ensure that the rights of these workers are respected and not infringed in any way.”

Businesses in Canada cannot close their doors due to workers joining a union. CWA Canada is suspicious of the circumstances around Ubisoft’s Halifax closure and is demanding more information from the company on its sudden decision to prove its claim of financial necessity. A spokesperson for Ubisoft told the union they would only commit to providing that information next week.

“Typically, in cases where employers are planning big layoffs, they share that info with the union in confidence before announcing it,” Smyth said in a Thursday press release. “Ubisoft is highly unionized internationally; its managers are aware of that. Why they choose not to follow standard practice, we do not know. But it raises the question: what is different about Canadian workers compared to its unionized workforce in France and other European countries?

“Why not help people keep their careers and lives on track?” Smyth continues. “Why penalize Nova Scotia workers and their families? Do the right thing.”

Jon Huffman, a member of the Ubisoft union organizing committee, said workers stand united despite the closure.

“We’re obviously disappointed by this news and fully intend to support each other through this difficult time,” says Huffman in the press release.

$11 million in tax credits

In a now-deleted post from Invest Nova Scotia, the business development organization outlines why Ubisoft may have chosen Halifax for its games studio. Reasons listed include talent from nearby colleges and universities, the Maritime hospitality that allows a welcoming environment to new staff, a location between North American and European offices, and Nova Scotia’s Digital Media Tax Credit.

The Digital Media Tax Credit allows companies creating interactive digital media within Nova Scotia to claim tax credits on 50% of its qualifying expenditures and 25% of its total expenditures. Corporations can also receive credit for marketing and distribution expenditures to a maximum of $100,000 per product, with claims able to be made outside of Nova Scotia. 

Publicly available tax credit data shows Ubisoft received around $11 million in tax credits across 67 projects from Nova Scotia since 2017, averaging around $164,000 per tax credit.

Ubisoft Halifax may have also qualified for Digital Animation Tax Credits and Research and Development Support Programs, according to Invest Nova Scotia and the union, further offloading its costs for doing business in Nova Scotia.

These tax credits are not abnormal—most Canadian provinces offer them to help boost the tech and media industries in their cities, typically making it a cheaper location for development operations. In fact, cities like Montreal have long been a haven for game studios due to their tax credit systems, allowing companies to expense costs, such as labour, using taxpayer dollars.

Besides Halifax, Ubisoft operates six studios in Canada: Montreal, Chicoutimi, Toronto, Winnipeg, Quebec City and Sherbrooke. Within North America, they also operate four studios in the United States.