Ubisoft has announced the layoff of 185 employees across Europe and the permanent closure of its Ubisoft Leamington studio in England. Additionally, the company is implementing staff reductions at its Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections studios as part of its ongoing restructuring plans.
In a statement provided to Eurogamer, Ubisoft explained its decision:
“As part of our ongoing efforts to prioritise projects and reduce costs that ensure long-term stability at Ubisoft, we have announced targeted restructurings at Ubisoft Düsseldorf, Ubisoft Stockholm and Ubisoft Reflections and the permanent closure of Ubisoft Leamington site. Unfortunately, this should impact 185 employees overall. We are deeply grateful for their contributions and are committed to supporting them through this transition.”
The Legacy of Ubisoft Leamington and Reflections Studios
Ubisoft Leamington, formerly known as FreeStyleGames, was acquired from Activision in 2017. Over the years, the studio made significant contributions to Ubisoft’s portfolio. Similarly, Ubisoft Reflections, a veteran studio in the industry, has worked on titles such as Just Dance 2012 and Just Dance Now.
These cuts mark a challenging period for Ubisoft as the company faces financial struggles and underperforming game releases, necessitating a strategic shift to streamline operations.
Financial Pressures and Potential Tencent Partnership
Ubisoft’s restructuring efforts come on the heels of a tough fiscal year. As part of its strategy to stabilize and boost its value, the company has been exploring partnerships and investments. Notably, reports suggest Tencent and Ubisoft’s founding Guillemot family are considering creating a new entity to house some of Ubisoft’s assets. The goal would be to increase the company’s overall valuation while maintaining the Guillemot family’s control.
Currently, the Guillemot family holds 14% of Ubisoft, while Tencent owns a 9.99% stake. Tencent has expressed interest in increasing its influence within the company, potentially as a move to prevent hostile takeover attempts from other investors. Discussions remain ongoing as shareholders evaluate their options.
Future Outlook
Ubisoft’s recent moves highlight the company’s efforts to adapt to a shifting market landscape while addressing financial challenges. However, these decisions also raise concerns about the impact on the workforce and the long-term direction of one of the gaming industry’s most prominent publishers.
Stay tuned for updates on Ubisoft’s restructuring and its implications for the gaming community.
