Ubisoft confirms 185 layoffs as it closes former DJ Hero studio and downsizes others
Assassin’s Creed maker Ubisoft is cutting jobs in Europe as part of wider restructuring plans
Ubisoft has confirmed plans to lay off 185 employees in Europe as a result of wider restructuring efforts.
The move will see the company close Ubisoft Leamington, which is based in Leamington Spa, England, and make cuts at Ubisoft Düsseldorf, Ubisoft Stockholm and Ubisoft Reflections.
Ubisoft Leamington was previously known as FreeStyleGames – the studio behind the DJ Hero series – before it was acquired by Ubisoft from Activision in 2017. It has since worked mainly as a support studio on games such as Far Cry 5, Avatar, and Star Wars Outlaws.
Ubisoft said in a statement provided to VGC: “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 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”
Following a number of underperforming releases and a worsening financial outlook, Ubisoft said this month that it’s taking “decisive steps” to reshape the company and is “actively exploring various strategic and capitalistic options to unlock the full value potential” of its assets.
The following week, it was claimed that Tencent and Ubisoft’s founding Guillemot family are considering the creation of a new venture containing some Ubisoft assets.
Citing people familiar with the situation, Bloomberg claimed the Chinese tech firm and Ubisoft’s founders are thinking of creating a new entity, which they will then move certain Ubisoft assets over to in an attempt to boost Ubisoft’s value.
The Guillemot family currently owns 14% of Ubisoft’s shares, while Tencent owns 9.99%.
Last October, Bloomberg reported that Tencent and the Guillemots had been speaking with advisers to explore ways to stabilize Ubisoft, following a year in which its market value more than halved.
Those discussions were said to have included the possibility of the pair teaming up to take Ubisoft private, although talks were said to be at an early stage at the time.
Further reading
A Reuters report published last month claimed that Ubisoft shareholders were considering how to structure a possible buyout of the company, without reducing the Guillemot family’s control.
Tencent was claimed to be undecided over whether to participate in that buyout and increase its stake in the company, reportedly because it has asked for a greater say on future board decisions. According to Reuters, discussions between the two are ongoing as Tencent also wants to prevent any potential hostile takeover of Ubisoft by other investors.
