Ubisofthas implemented new cost-cutting measures that have led to the closure of itsLeamington studio, along with the layoff of 185 employees.
Ubisoft Leaves 185 Employees Jobless
The release ofAssassin’s Creed Shadows, set to launch in three weeks on PS5, Xbox Series X/S, and PC, marks a pivotal moment for Ubisoft, which is currently facing one of its most critical periods.
After losing 85% of its market value, the French company is exploring partial privatization as well as the creation of a new entity encompassing several of its key assets.
In early January, it was revealed that Ubisoft had initiated a series of cutbacks to prevent a deeper financial crisis. Now, those measures have taken a harsh turn with the announcement of nearly 200 layoffs.
In an official statement, Ubisoft announced mass layoffs and the closure of its UK-based Leamington studio.
“As part of our efforts to prioritize projects and reduce costs to ensure Ubisoft’s long-term stability, we are announcing the permanent closure of Ubisoft Leamington,” the statement read.
The announcement also outlined the restructuring of studios in Düsseldorf, Stockholm, and another UK subsidiary, Ubisoft Reflections, which had closely collaborated with the Leamington team.
The statement concluded: “Unfortunately, this decision will impact 185 employees. We deeply appreciate their contributions and are committed to supporting them during this transition.”
Ceases Operations At its Leamington Studio
Currently employing 50 people, the Leamington studio will close its doors after nearly 23 years of operation. It was originally founded in 2002 as FreeStyleGames by veterans from Rare and Codemasters, acquired by Activision in 2008, and integrated into Ubisoft in 2017. Since then, it has contributed to some of Ubisoft’s most notable games.
Far Cry 5, Star Wars Outlaws, Skull and Bones, and Avatar: Frontiers of Pandoraare among the titles the Leamington studio worked on, both as a lead and support developer.
All these measures (along with additional ones expected in the coming months) aim to save approximately €200 million in the next fiscal year following disappointing holiday sales.
This marks the continuation of a prolonged crisis. The failure ofXDefiantand underwhelming sales of Star Wars Outlaws triggered this internal restructuring at Ubisoft.
The success ofAssassin’s Creed Shadowswill be a decisive factor for the company, as it could shape the direction of ongoing negotiations to privatize Ubisoft.
Strong performance from Shadows would bolster the Guillemot brothers' position in negotiations. However, if the game flops, Tencent could potentially gain control of Ubisoft with a lowball offer.
Both sides are closely watching the trajectory of the newAssassin’s Creedinstallment, a game that has not been able to steer clear of controversy. Despite developers’ efforts to remain faithful to Japanese history, Shadows will be censored in Japan due to its content.
Be sure to check out other newsDragon Age: The Veilguard Co-Director Talks About Leaving BioWareand alsoAssassin’s Creed Shadows Reveals New Trailer
