It’s a New Year with the same beginning as the previous. Ubisoft has announced that it will cut 185 roles in Europe as part of a broader restructuring process. The decision will lead to the closure of Ubisoft Leamington based in Leamington Spa, England.
In addition to closing down its Leamington studio, Ubisoft will cut roles at Stockholm, Reflections, and Düsseldorf. Previously called FreeStyleGames before its acquisition from Activision in 2017, Ubisoft Leamington is the developer of the DJ Hero series.
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After its acquisition, the studio has supported the production of games like Star Wars Outlaws, Far Cry 5, and Avatar. In a statement sent to VGC, Ubisoft confirmed that the decision was a cost-cutting approach for long-term stability.
“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 and the permanent closure of the Ubisoft Leamington site. Unfortunately, this should impact 185 employees overall. We are deeply grateful for their contributions and are committed to supporting them through this transition.”
Ubisoft has seen a slump in its financial outlook following back-to-back releases of underperforming titles. This month, the company said it was taking “decisive steps” to revamp the company and is “actively exploring various strategic and capitalistic options to unlock the full value potential” of its assets.
According to a Bloomberg report, Tencent and the Guillemot family are mulling the creation of a new venture that will become the new home of some Ubisoft assets. The Bloomberg report cited sources familiar with the matter.
Tencent owns 9.99% of Ubisoft while the Guillemot family owns 14%. Last year it was also widely reported that there were talks for a possible divestment of the company or taking it private after its share value slumped to a 10-year low. The talk was believed to be in the early stages at that time.
The rise of mass layoffs in the video game industry started in 2023. That trend continued throughout 2024 with several studios eventually being shut down. While analysts have a better outlook for 2025, high-profile layoff news will likely dot several months of the year.
