Ubisoft (UBSFY) stock was up on Wednesday after the video game developer and publisher confirmed new layoffs. This affects 19 members of Red Storm Entertainment, the development team behind Star Trek: Bridge Crew and games in the Tom Clancy’s series.
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According to Ubisoft, these layoffs are part of its previously announced restructuring plans. The company also noted that its latest round of layoffs won’t extend to other developers. It has also offered severance packages, extended healthcare benefits, and career transition assistance to employees affected by the layoffs. Interestingly, Red Storm Entertainment’s website notes that it is still hiring.
The recent Ubisoft layoffs came after the company received $1.25 billion in new funding from Tencent (TCEHY). The Chinese video game developer provided the company with much-needed cash when it was in a tough financial position. Even with those funds, the company has determined that organizational changes are required to continue operations.
Ubisoft Stock Movement Today
UBSFY stock was up 0.47% as of Wednesday morning, but remains down 21.69% year-to-date. The shares have also fallen 56.38% over the past 12 months. Today’s movement came with heavy trading, as some 40,000 shares were traded, compared to a three-month daily average of roughly 1,750 units.
Is Ubisoft Stock a Buy, Sell, or Hold?
Turning to Wall Street, there’s a lack of significant coverage for the video game company. Even so, Spark, TipRanks’ AI analyst, has it covered. Spark rates Ubisoft a Neutral (56) with no price target. It cites the company’s “recovery trajectory with revenue growth and operational improvements” but warns of “profitability issues, negative cash flow, and a challenging valuation” as reasons for this stance.
