Ubisoft Shutters Studio, Cuts 185 Jobs Amid Cost-Cutting Measures

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Summary

  • Ubisoft is closing its studio in Leamington, UK, and cutting jobs at three other locations.
  • The layoffs and studio closure will reportedly impact 185 employees.
  • The company’s next game, Assassin’s Creed Shadows, will be released on March 20, 2025.

Ubisoft is permanently closing its studio in Leamington, UK, and reducing staff at three other studios. Prior to being acquired by Ubisoft, the Leamington team had contributed to games such as Call of Duty: Infinite Warfare for Activision. After joining forces with Ubisoft, they played significant roles in creating titles like Far Cry 5 and Tom Clancy’s The Division. Despite the popularity of these games, Ubisoft is making this decision as part of a larger plan to reduce expenses.

In recent years, Ubisoft, a prominent name in top-tier game development, has encountered various difficulties. The stock price dropped following the launch of Star Wars Outlaws, a game developed by Ubisoft Leamington, due to disappointing sales that some critics attributed to the game. Furthermore, Assassin’s Creed Shadows has been delayed multiple times, which could indicate higher demands on the studio to meet player expectations. The struggles appear to continue as layoffs are being implemented across several Ubisoft subsidiaries.

According to an announcement made to gaming news site Eurogamer, Ubisoft has decided to permanently shut down Ubisoft Leamington and reduce staff at several other locations including Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections. In total, this will impact approximately 185 employees across these four studios. This news arrives shortly after the company announced it would be shutting down the servers for the game XDefiant on June 3, 2025, about a year after its initial release. Mark Rubin, who is the executive producer of XDefiant, explained that free-to-play games often require a significant amount of time to generate profits, and this is also the reason behind the recent layoffs at Ubisoft. In their statement, Ubisoft stated that these actions are part of their ongoing strategy to focus on projects and reduce costs.

Ubisoft Studio Closure and Layoffs Will Impact 185 Employees

The possibility remains that Ubisoft might continue to streamline its operations beyond shutting down Leamington and reducing staff at other locations. A potential option under consideration is a division of the company between Ubisoft and Tencent, rather than making it private. This proposed split could enhance Tencent’s control over Ubisoft’s properties, possibly infusing more funds into the business. Simultaneously, it would distribute some operational costs associated with managing all of Ubisoft’s assets. However, whether this plan will materialize is yet to be determined. Any significant decisions might be delayed until the performance of Assassin’s Creed Shadows becomes clearer.

Despite any further actions, Ubisoft’s recent studio closure and job cuts are unfortunately consistent with a recurring pattern within the gaming industry. For instance, Microsoft had to let go of 650 employees in late 2024, following an earlier dismissal of around 1,900 workers. Similarly, Sony, Bungie, Sega, and numerous independent developers have made such decisions over the past year as economic challenges continue to affect both large and small game studios.

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2025-01-27 20:46