Ubisoft Shuts Down Studio and Lays Off 185 Employees Amid Cost-Cutting Measures

Ubisoft has announced significant cutbacks, including the closure of its Leamington studio in the UK and layoffs affecting employees across multiple locations. The latest restructuring move will impact around 185 staff as the company continues to grapple with financial challenges and underperforming game titles.

Ubisoft Leamington Shuts Its Doors

Located in Royal Leamington Spa, the 50-person Ubisoft Leamington studio has been permanently closed. The studio, originally known as FreeStyleGames before Ubisoft acquired it from Activision in 2017, had contributed to notable projects like Guitar Hero Live and the DJ Hero series. Since becoming part of Ubisoft, the team had assisted in the development of titles such as Tom Clancy’s The Division, Star Wars Outlaws, Skull and Bones, and Far Cry 5.

Global Layoffs Across Studios

In addition to the closure of Ubisoft Leamington, employees in Stockholm, Düsseldorf (Germany), and Newcastle (Ubisoft Reflections) are also affected by the layoffs. Ubisoft confirmed the decision in a statement to Eurogamer:

“As part of our ongoing efforts to prioritize projects and reduce costs that ensure long-term stability at Ubisoft, we have announced targeted restructurings at Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections, along with the permanent closure of the Ubisoft Leamington site. Unfortunately, this will impact 185 employees overall. We are deeply grateful for their contributions and are committed to supporting them through this transition.”

Struggles with Underperforming Games

The restructuring comes as Ubisoft faces challenges from underperforming games like Star Wars Outlaws and Prince of Persia: The Lost Crown, both of which failed to meet sales expectations. Developers from these projects have been reassigned to other teams, and Ubisoft recently announced it would shut down XDefiant in the coming months, resulting in another wave of layoffs affecting 277 workers across three studios.

These cutbacks have been part of an ongoing effort to streamline operations. By the end of September, Ubisoft’s workforce had already shrunk from 20,279 to 18,666, according to Eurogamer.

Future Uncertainty and Possible Partnerships

Amid these challenges, there are reports that Ubisoft may be exploring a sale or a joint venture with Tencent, with some assets potentially on the table. Earlier this month, the company noted in a press release that it had appointed advisors to explore “strategic and capitalistic options” to maximize stakeholder value. Ubisoft has also stated its intent to drive “significant cost reductions.”

Hopes Pinned on Assassin’s Creed Shadows

As the company faces mounting challenges, much of Ubisoft’s future seems to rest on the success of its flagship franchise, Assassin’s Creed. The upcoming installment, Assassin’s Creed Shadows, is expected to cater to both long-time fans and newcomers. While early impressions of the game are positive, it remains a significant challenge for a single title to reverse the fortunes of a company as large and unsteady as Ubisoft.

The gaming industry will be watching closely to see if Ubisoft can weather the storm and regain its footing in the months ahead.