Ubisoft (UBSFY) has shut down one of its studios and reduced headcounts at others as financial struggles continue to flog the video game developer and publisher. This has the company shuttering Ubisoft Leamington, leaving only a few vital staff out of the 50 employees.
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In addition to that closure, Ubisoft is restructuring three other studios: Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections. Each of these is experiencing layoffs with 185 employees impacted including the Leamington closure.
Ubisoft told Eurogamer that the closure and restructurings were part of its “efforts to prioritise projects and reduce costs that ensure long-term stability.” These latest layoffs build on mounting job cuts, which have seen the video game maker reduce its workforce from 20,279 in 2022 to 18,666 in September 2024.
What’s Next for Ubisoft?
Things aren’t looking good for Ubisoft as many of its latest game releases have performed poorly, such as Star Wars Outlaws disappointing gamers and the company ending live-service shooter XDefiant. Additionally, the upcoming Assassin’s Creed Shadows has been delayed twice following controversies with its release set for March 20, 2025.
There have been rumors that Ubisoft is courting bankruptcy as it seeks strategic alternatives. Among these are claims it wants Chinese video game giant Tencent (TCEHY) to take it private. However, reports suggest that negotiations have stalled due to Ubisoft CEO Yves Guillemot’s desire to retain control of the company.
Is UBSFY Stock a Buy, Sell, or Hold?
Turning to Wall Street, there’s no analysts’ consensus data for Ubisoft. Looking back at the company’s earnings history, it missed EPS estimates in five of the last eight quarters. However, revenue has consistently come in above expectations. These results call into question an investment in the video game company.
