The thick multi-year sea ice that once covered large parts of the Arctic Ocean is being replaced by thinner and weaker first-year ice, making it increasingly vulnerable to breakup by storms. Here we use a sea ice model to investigate the driving mechanisms behind a large sea-ice breakup event in the Beaufort Sea in response to a series of storms during February–March 2013.These simulations are the first to successfully reproduce the timing, location and propagation of sea-ice leads associated with storm-induced breakup. We found that rheology in the sea-ice model and horizontal resolution in the atmospheric model are both crucial in accurately simulating such breakup events. The sensitivity of the breakup to the initial sea-ice thickness indicates that large breakup events will become more frequent as Arctic sea ice continues to thin. Here we show that large breakup events during winter have a significant impact on ice growth through enhanced air-sea fluxes in open leads, and enhanced drift speeds which increase the export of old, thick ice out of the Beaufort Sea. Overall, this results in a thinner and weaker ice cover that may precondition earlier breakup in spring and accelerate sea-ice loss.