Ubisoft, a major video game publisher known for titles like Assassin’s Creed, announced a major “reset” Wednesday involving layoffs, canceled and delayed games and a stricter return-to-office mandate.
Co-founder and CEO Yves Guillemot said in a press release that the Paris-based company would “selectively close several studios and continue restructurings throughout the group. While these decisions are difficult, they are necessary for us to build a more focused, efficient and sustainable organization over the long term.”
The new plan is to implement a “Creative House” structure focused on open-world adventure and “game-as-service-native experiences.”
Among the six canceled titles is a high-profile Prince of Persia adaptation. Seven more game titles have been delayed in order to continue their development.
The company is also calling staffers back to work in the office five days a week. After the remote posture of Covid, the pendulum has swung back in the opposite direction across many industries. The turnabout is particularly evident in the tech sector, where five-day in-office weeks are now commonplace.
The video game business overall remains robust, but it is undergoing dramatic changes as consumers shift from console gaming to mobile games, now an $80 billion-plus business. The years-long process of making traditional tentpole games has become increasingly challenging and capital-intensive, with more nimble and inexpensive titles getting corporate emphasis.
The exact number of workers affected by the layoffs was not identified by management, but in a press release the company confirmed a “final” round of cutbacks. The goal of that effort is to achieve €200 million in cost savings (about $240 million). Multiple reductions dating back to 2022 have netted about €500 million in savings, the company said.
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