Ubisoft Announces 185 Layoffs, Closes UK Studio Amid Ongoing Restructuring
TLDR:
- Ubisoft Leamington studio closing, affecting 50 employees
- 135 additional layoffs across studios in Düsseldorf, Stockholm, and Newcastle
- Part of ongoing cost reduction strategy following underperforming games
- Exploring strategic options with Tencent for potential joint venture
- Assassin’s Creed Shadows delayed to March 20, 2025
Latest Round of Restructuring
In a significant move that reflects the ongoing challenges in the gaming industry, Ubisoft has announced another round of layoffs affecting 185 employees across its European operations. The French gaming giant’s latest restructuring includes the permanent closure of Ubisoft Leamington in the UK and substantial staff reductions at multiple studios, marking another chapter in the company’s efforts to streamline operations.
Impact Across Europe
- Ubisoft Leamington (UK)
- Complete studio closure
- 50 employees affected
- Former FreeStyleGames studio
- Additional Affected Studios
- Ubisoft Düsseldorf (Germany)
- Ubisoft Stockholm (Sweden)
- Ubisoft Reflections (Newcastle, England)
- Combined 135 employees impacted
Legacy of Excellence
Ubisoft Leamington’s closure marks the end of a studio with a rich development history. Originally known for creating the DJ Hero series under Activision’s banner, the studio had become an integral part of Ubisoft’s development ecosystem since its acquisition in 2017. Under Ubisoft’s leadership, the team contributed to several major titles:
- Star Wars Outlaws
- Skull and Bones
- Far Cry 5
- Tom Clancy’s The Division series
Industry Challenges and Company Response
This restructuring comes during a particularly challenging period for Ubisoft. The company has faced several setbacks with recent game releases, including Star Wars Outlaws failing to meet sales expectations and Prince of Persia: The Lost Crown underperforming in the market. Adding to these challenges, the company recently announced the upcoming closure of XDefiant.
Recent Company Changes
- December 2024: 277 employees laid off
- Multiple studio closures throughout 2024
- Headcount reduction: 20,279 to 18,666 by September
- Projected cost reduction: 200 million Euros by 2026
Strategic Path Forward
As Ubisoft navigates these challenges, the company is actively exploring various strategic options to stabilize its business. The gaming publisher has appointed advisors to review potential opportunities, including ongoing discussions with Tencent about a possible joint venture. The current ownership structure shows:
- Guillemot family: 14% ownership
- Tencent: 9.99% ownership
These stakeholders are considering new business structures to strengthen the company’s position in the competitive gaming market.
Looking to the Future
Despite these challenges, Ubisoft continues to work on major projects, though with some adjustments. The company recently announced a delay for Assassin’s Creed Shadows, pushing the release date to March 20, 2025. This decision reflects Ubisoft’s commitment to delivering quality products while managing resources effectively.
Company Statement
In addressing these changes, Ubisoft expressed gratitude to affected employees, stating, “We are deeply grateful for their contributions and are committed to supporting them through this transition.” The company maintains that these difficult decisions are necessary steps toward ensuring long-term stability and success in an increasingly competitive industry.