Ubisoft Announces Major Restructuring: Studio Closures, Project Cancellations, and Workforce Reductions

Ubisoft has announced a series of operational changes, including studio closures, project cancellations, and workforce reductions, as part of a company-wide restructuring plan. These actions affect multiple locations and development teams across the company.

Studio Closures and Restructuring

Ubisoft has closed studios in Winnipeg (Canada) and Belgrade (Serbia), and restructured its Barcelona (Spain) team. The Barcelona studio will now focus solely on Tom Clancy's Rainbow Six: Siege. Previously, the Barcelona team worked on The Division and Assassin's Creed titles. Ubisoft's mobile studio in Barcelona is not affected by these changes.

Additional studio closures include locations in Stockholm (Sweden) and Halifax (Canada), as well as the Leamington Spa (UK) studio. In 2024, Ubisoft closed its Stockholm and Halifax studios, and ceased game development at Red Storm studio. Office closures and job reductions have also occurred in San Francisco, Osaka, and Sydney, reducing headcount by 1,500 people.

Project Cancellations and Delays

Ubisoft has canceled six video game projects, including the remake of Prince of Persia: The Sands of Time. Among the canceled projects are four unannounced titles: three based on new intellectual property and one mobile game. The company has also delayed seven additional projects.

Workforce Reductions

The restructuring has resulted in approximately 380 job losses associated with the closure of Winnipeg and Belgrade studios and the restructuring of the Barcelona team. Ubisoft Toronto reduced its workforce by 40 roles. Development on the Splinter Cell remake and co-development projects, including Rainbow Six, will continue at Ubisoft Toronto.

A voluntary redundancy program at Ubisoft International in Paris proposed the reduction of 200 roles. In early 2024, the company announced 200 job cuts in its Paris division, and cuts occurred at Ubisoft Abu Dhabi, RedLynx, and Massive Entertainment.

Financial Context

Ubisoft reported that these measures are part of a plan to reduce fixed costs by €500 million, from $1.75 billion in March 2023 to $1.25 billion by March 2028. Following the restructuring announcement, the company's share price decreased by approximately one-third, bringing the company's valuation to approximately €590 million (£514 million), its lowest since 2011.

"The restructuring is a response to a more selective and competitive market for AAA games."

— Yves Guillemot, Ubisoft Founder and CEO

Company Statements and Market Conditions

Ubisoft founder and CEO Yves Guillemot stated that the restructuring is a response to a "more selective and competitive market" for AAA games, citing rising development costs and increased challenges in establishing brands.

Industry analyst Piers Harding-Rolls indicated the company is likely attempting to mitigate risk by focusing investment on established franchises. Gaming industry economist Laurent Michaud suggested that action-adventure titles are currently less aligned with market demand compared to genres like shooters, cooperative adventure titles, and multiplayer sports games.

"These decisions do not reflect on the talent or dedication of affected individuals. Our priority is to support those impacted through severance packages and career placement assistance."

— Ubisoft Statement

Ubisoft stated that the workforce reduction decisions do not reflect on the talent or dedication of affected individuals, and that the company's priority is to support those impacted through severance packages and career placement assistance.