Ubisoft has announced the layoff of 185 employees across its European studios as part of a significant restructuring initiative. This decision includes the permanent closure of Ubisoft Leamington, formerly known as FreeStyleGames, the studio behind the DJ Hero series, which has primarily supported major titles like Far Cry 5 and Star Wars Outlaws.
Details of the Layoffs
In a statement to VGC, Ubisoft confirmed that the layoffs would affect teams at Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections. The company emphasized that these changes are essential for prioritizing projects and reducing costs to ensure long-term stability.
“We are deeply grateful for their contributions and are committed to supporting them through this transition,” Ubisoft stated regarding the impacted employees.
Reasons Behind the Restructuring
The layoffs come in response to a series of underperforming game releases and a deteriorating financial outlook. Ubisoft is taking “decisive steps” to reshape its operations and is actively exploring strategic options to enhance the value of its assets. Recent reports suggest that Tencent and the founding Guillemot family are considering creating a new venture involving some of Ubisoft’s assets in an effort to boost the company’s value.
Ongoing Discussions
The Guillemot family currently holds 14% of Ubisoft’s shares, while Tencent owns nearly 10%. Discussions have been ongoing about stabilizing Ubisoft, including potential buyout strategies that would preserve the Guillemot family’s control over the company. These talks are reportedly at an early stage, with Tencent seeking greater influence over future board decisions to prevent any hostile takeovers.
As Ubisoft navigates these challenges, the impact of these layoffs highlights a critical juncture for the company as it strives to regain its footing in an increasingly competitive gaming market.
