Ubisoft has confirmed the closure of its UK studio based in Leamington, resulting in the loss of 185 jobs across multiple locations. Specifically, 100 of these layoffs will impact the UK workforce, highlighting the significant downsizing occurring within the gaming giant. Alongside the closure of the Leamington studio, targeted restructurings will also affect Ubisoft offices in Düsseldorf, Stockholm, and Reflections.
According to Ubisoft representatives, the shutdown is framed as part of their "ongoing efforts to prioritize projects and reduce costs ensuring long-term stability at Ubisoft." This announcement, communicated through various channels including Eurogamer and PC Gamer, reflects the company's recognition of the need for restructuring amid persistent challenges.
“Unfortunately, this should impact 185 employees overall. We are deeply grateful for their contributions and are committed to supporting them through this transition,” stated a Ubisoft spokesperson, offering some assurance to the affected staff.
The Leamington studio, which was initially founded as FreeStyleGames back in 2002, has been through its share of transitions. After developing popular titles such as DJ Hero and Guitar Hero Live, it struggled with declining interest in the music game genre, leading to its acquisition by Ubisoft in 2017. Since its renaming, the studio contributed to various projects, including Hyper Scape, Watch Dogs: Legion, and Skull and Bones.
This latest wave of layoffs and studio closures is just one part of Ubisoft's larger strategy announced earlier this month. Following what they described as “an absolutely dire 2024,” the company cited delays, cancellations, and market disappointments, including the lackluster reception of its title Star Wars Outlaws. Just as significantly, the upcoming release of Assassin's Creed Shadows—set for March 2025—was delayed, raising questions about its potential impact on the company’s future.
Since 2022, Ubisoft has faced significant job cuts, dwindling from 20,279 employees to 18,666 by the end of September 2024. The company’s headwinds were compounded by the disappointing financial performances of recent titles, leading to what they describe as "decisive steps to reshape the Group" to deliver enhanced player experiences, operational efficiency, and value creation.
The question of ownership hovering over Ubisoft adds another layer of complexity to their situation. Talks involving Tencent, which is currently the company’s second-largest shareholder, have been reported amid speculation of potential buyouts. These negotiations appeared to stall recently due to resistance from the Guillemot family, which founded Ubisoft and is determined to preserve their control of the company.
Ubisoft's focus on shareholders rather than players has sparked concern among gamers and industry observers alike, especially as the company navigates this turbulent phase. The scrutiny over their game quality and company decisions has intensified.
With the gaming community’s eyes firmly on Assassin's Creed Shadows, there is great hope within Ubisoft for the title to turn their fortunes around. After extensive delays, the game is now set to launch on March 20, 2025, and the development team has stated they’re using the extra time to refine gameplay elements like parkour, which are core to its appeal.
The fallout from these events has ignited extensive discussions about the future of Ubisoft and its projects, with many wondering if the company can rebound from its current struggles. The upcoming financial report on February 13 is anticipated to shed light on the company's strategy moving forward as they continue to adapt to the shifting demands of the gaming industry.
Overall, the restructuring at Ubisoft is emblematic of the broader challenges facing the gaming industry, where market dynamics, consumer preferences, and production costs continually evolve. The fate of the company, its employees, and its long-term success rests on the strategic decisions made from this point onwards. The situation at Ubisoft serves as both a cautionary tale and potential roadmap for other studios grappling with similar issues.