In a recent announcement, major game publisher Ubisoft revealed a restructuring plan that includes the layoff of 185 employees and the closure of one studio.

Known for franchises like Assassin's Creed, last year's Star Wars Outlaws, and Avatar: Frontiers of Pandora, Ubisoft today announced the closure of a studio and staff reductions as part of a restructuring initiative.  Ubisoft Leamington (formerly FreeStyleGames, developers of the DJ Hero series) is the studio being shuttered.  Additionally, layoffs are impacting Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections, resulting in a total of 185 job losses.

In a statement to the press, Ubisoft explained, "As part of our ongoing efforts to prioritize our projects and streamline our costs to ensure long-term stability, we are implementing targeted restructuring measures, including the closure of Ubisoft Leamington." Regarding the affected employees, Ubisoft added, "We deeply appreciate their contributions and are committed to providing support during this transition."

This restructuring comes amidst continuing uncertainty surrounding Ubisoft's prospects in the coming months.

Earlier this month, Ubisoft CEO Yves Guillemot held a call with management, explaining that the company would take "decisive actions to further transform our organization, improve its efficiency, and maximize our value creation,” essentially seeking to enhance its appeal to investors or potential acquirers.  Rumors persist that investor Tencent might increase its involvement, potentially even considering a new joint venture with some of Ubisoft's core assets.

Ubisoft's struggles last year stemmed primarily from underperforming flagship titles:

- Skull and Bones, first revealed at E3 2017 and released in 2024 after multiple delays, failed to meet sales and critical expectations.

- The free-to-play first-person shooter XDefiant, despite a strong start, was announced for permanent shutdown by Ubisoft in December, with services ceasing in June of this year.

- Star Wars Outlaws and Avatar: Frontiers of Pandora also underperformed in the market.

The company's hopes now rest on Assassin's Creed Mirage.  Initially slated for a November 2024 release, the game has been delayed twice and is now scheduled for March 2025. While recent previews have been lukewarm, this doesn't necessarily translate to poor sales, and the game's performance is crucial to reversing Ubisoft's current trajectory.

Regardless of the outcome, Ubisoft executives and investors are likely protected.  A year from now, Ubisoft may be acquired by another company (potentially Tencent, or perhaps another entity). Ultimately, the focus should be on those affected by this "restructuring" and others who may face similar situations in the future, and their ability to find more stable employment within the games industry.