Last December, Ubisoft announced the closure of its studio in Halifax, Canada. This decision came three weeks after 61 of the company’s 71 employees unionized. The publisher was quick to explain that the two actions were in no way related.
This week, CWA Canada, the only union covering all media in the country, filed a complaint with the Nova Scotia Labor Relations Board. The organization said it was outraged by the closure, stating that Ubisoft had received nearly C$1 billion in tax subsidies over the past five years to operate its business.
These tax breaks are intended to encourage large companies to set up operations in Canada. To set up its studios in Halifax, Ubisoft received $12 million from Nova Scotia taxpayers. This was a huge investment by the province, which ultimately went up in smoke. Documents obtained from the French Senate also revealed that the company received several hundred million dollars in tax credits.
“According to documents, Ubisoft received €605.6 million (approximately C$980 million at current exchange rates) in tax credits from Canadian governments between 2020 and 2024.
It is outrageous that a company can receive hundreds of millions in tax breaks—public money—and then shut down and lay off employees. And it is shocking that governments allow this to happen. Immediate changes are needed to hold companies accountable. Regulations must clearly stipulate that any closure or significant reduction in activity must result in the repayment of public subsidies.”
Finally, CWA Canada accuses Ubisoft of carrying out these layoffs in order to prevent the studio from unionizing.
