Ubisoft Restructures with Studio Closures and Layoffs

Ubisoft, one of the largest video game publishers in the world, has announced major restructuring efforts across its European operations. The company is permanently closing its Leamington studio and laying off staff in its Düsseldorf, Stockholm, and Reflections offices. This move, which affects 185 employees in total, reflects Ubisoft’s ongoing strategy to prioritize key projects, reduce costs, and position the company for long-term stability.

This announcement marks another challenging chapter for Ubisoft, following similar closures in San Francisco, Osaka, and Sydney over the past few months.

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Why Is Ubisoft Closing Studios?

Ubisoft has been under increasing pressure to realign its operations after a difficult 2024, marked by delayed releases, underwhelming sales, and the cancellation of multiple projects. Star Wars Outlaws, one of Ubisoft’s highly anticipated titles, underperformed commercially, and games like Assassin's Creed: Shadows were delayed into 2025.

In an official statement, Ubisoft explained the closures as part of a broader strategy to “reshape the Group in order to deliver best-in-class player experiences, enhance operational efficiency, and maximize value creation.”

Studios Affected

• Leamington (UK): Permanently closed; formerly known as FreeStyleGames, acquired from Activision in 2017. Contributed to titles like Far Cry 5 and Star Wars Outlaws.
• Düsseldorf (Germany): Downsized; previously supported projects like Avatar: Frontiers of Pandora.
• Stockholm (Sweden): Downsized; contributed to major Ubisoft franchises.
• Reflections (Newcastle, UK): Downsized; best known for Grow Home and The Crew.

Despite the closures, Ubisoft has offered remote contracts to select employees with “essential skills.” However, the company confirmed that approximately 185 employees would ultimately be let go.

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The Fallout of Ubisoft’s Restructuring

Employee Impact and Support Measures

Ubisoft emphasized its gratitude to affected employees and committed to supporting them during the transition. However, the layoffs have raised questions about the company’s stability, given its history of restructuring and downsizing over the past two years.

Additionally, Ubisoft’s reliance on support studios like Leamington and Reflections means that the workload for its remaining teams could increase significantly, potentially straining future development cycles.

Performance Concerns in 2024

The decision to downsize stems from Ubisoft’s disappointing performance in 2024:

• Star Wars Outlaws struggled with sales despite a strong marketing push.
• XDefiant, the live-service shooter, was canceled, further contributing to financial losses.
• Multiple delays, including Assassin’s Creed: Shadows, hindered the company’s momentum.

Tencent’s Role in Ubisoft’s Future

Reports suggest that Tencent, Ubisoft’s second-largest shareholder, is working with the Guillemot family (the majority stakeholders) to stabilize the company. However, disagreements over executive control have slowed down any potential buyout discussions.

Industry Reactions and Comparisons

Ubisoft’s restructuring highlights a broader trend of layoffs and cost-cutting across the gaming industry. Companies like Electronic Arts and Microsoft have also implemented similar measures, citing rising development costs and evolving market demands.

While some industry analysts applaud Ubisoft’s efforts to focus on fewer, high-quality projects, others argue that repeated layoffs and studio closures could harm its reputation as a top-tier developer.

Closing Thoughts: The Future of Ubisoft

Ubisoft’s decision to close studios and lay off employees underscores the financial and creative challenges the company currently faces. While restructuring may help Ubisoft prioritize key projects and improve operational efficiency, the repeated layoffs and closures risk alienating both its workforce and its audience.

As the gaming industry continues to evolve, Ubisoft’s ability to adapt while maintaining player trust will determine its long-term success. For now, all eyes are on the company’s upcoming titles and financial update on February 13, which may shed more light on its future strategy.

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Frequently Asked Questions (FAQs)

Why did Ubisoft close its Leamington studio?

Ubisoft closed its Leamington studio as part of broader restructuring efforts to reduce costs and streamline operations. The studio, which contributed to games like Far Cry 5 and Star Wars Outlaws, had primarily been a support team. Ubisoft stated that these changes aim to ensure long-term stability by focusing resources on key projects.

How many employees were affected by Ubisoft’s layoffs?

In total, 185 employees across Ubisoft’s Leamington, Düsseldorf, Stockholm, and Reflections studios were impacted. While some workers have been offered remote contracts, the majority face layoffs as part of the restructuring.

Is this the first time Ubisoft has closed studios?

No, Ubisoft has implemented several closures and layoffs in recent years. In December 2024, the company closed its San Francisco and Osaka studios, as well as downsized its operations in Sydney. This brings the total number of affected employees across all locations to over 500 within two months.

What’s next for Ubisoft after these layoffs?

Ubisoft plans to focus on its flagship franchises, such as Assassin’s Creed, Far Cry, and Rainbow Six, while supporting upcoming releases like Assassin’s Creed: Shadows and Avatar: Frontiers of Pandora. The company is also exploring strategic partnerships with Tencent to stabilize its financial future.

What role does Tencent play in Ubisoft’s restructuring?

Tencent, Ubisoft’s second-largest shareholder, has been working with the Guillemot family to explore options for stabilizing the company. However, disagreements over executive control have slowed down progress on potential buyout discussions.

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