Ubisoft has undertaken another major restructuring by closing Ubisoft Leamington and laying off 185 employees at three other studios, namely Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections. This information was first reported by Eurogamer before it was officially confirmed by Ubisoft. This decision is said to be part of an ongoing effort to prioritize projects and reduce costs, in order to maintain the company's long-term stability.
Ubisoft Leamington's Closure and Its Impact
Ubisoft Leamington, formerly known as FreeStyleGames, has a long history in the gaming industry. The studio was founded in 2002 and was originally under Activision before being acquired by Ubisoft in 2017. Over the years, Ubisoft Leamington has contributed to the development of major titles such as Hyper Scape, Watch Dogs: Legion, Avatar: Frontiers of Pandora, and Skull and Bones.
A Ubisoft representative stated, "As part of our ongoing efforts to prioritize projects and reduce costs to ensure long-term stability at Ubisoft, we have announced targeted restructuring at Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections as well as the permanent closure of the Ubisoft Leamington studio. Unfortunately, this impacts 185 employees in total. We are very grateful for their contributions and are committed to supporting them through this transition."
Despite being part of the Ubisoft ecosystem for almost seven years, the studio has not escaped the impact of the ongoing restructuring. The closure of Ubisoft Leamington adds to the long list of studios shut down by Ubisoft in recent months.
Layoffs at Three Other Studios and Broader Implications
In addition to closing Ubisoft Leamington, Ubisoft also made layoffs at three other studios. Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections underwent restructuring that affected 185 employees. Ubisoft stated that they are grateful for the contributions of the affected employees and will support them during this transition period.
This move comes in the midst of a difficult year for Ubisoft. Sales of several flagship games didn't meet expectations, and delays to big projects like Assassin's Creed Shadows makes companies have to make strategic decisions to maintain operational efficiency and company value.
Ubisoft's Crisis and Survival
Ubisoft faced major challenges throughout 2024, with various projects experiencing delays, game cancellations, and sales performance falling short of expectations. In its latest strategy report, the company affirmed that the steps taken are aimed at overhauling the organization to deliver the best experience for players, improve operational efficiency, and maximize value creation for shareholders.
Sales Star Wars Outlaws lower than expected was one of the main factors that worsened Ubisoft's financial condition. On top of that, Assassin's Creed ShadowsUbisoft, which was originally expected to be a savior for the company's performance that year, was eventually postponed until March 2025. As a result of these pressures, Ubisoft took the strategic step of releasing their games on Steam after several years of working exclusively with the Epic Games Store.
Amidst this uncertainty, reports emerged of a potential acquisition by Tencent. Negotiations are ongoing, but there are differences of interest between Tencent and the Guillemot family, who are the founders of Ubisoft. Tencent wants to gain more control in executive decision-making, while the Guillemot family wants to retain control over the company.
Ubisoft's Future Direction
Ubisoft's situation is still unstable. With a series of studio closures and restructuring underway, the gaming industry is now looking forward to the company's next move. The next financial report scheduled for February 13, 2025 will hopefully provide a clearer picture of Ubisoft's strategy going forward and how they plan to face the challenges ahead.
Source: PC Gamer
