Ubisoft Confirms Studio Closure and Employee Layoffs

Overview of Recent Developments at Ubisoft

Ubisoft is shutting down its Leamington studio in the UK and implementing job cuts across three other locations.
These actions are set to affect 185 employees in total.
The anticipated release of the next title in the Assassin’s Creed series, titled Assassin’s Creed Shadows, is scheduled for March 20, 2025.

Ubisoft recently announced the closure of its Leamington studio in the United Kingdom, alongside a series of job cuts at additional locations, including Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections. This decision is part of a broader strategy focused on cost reduction as the gaming giant navigates financial challenges despite its stature in the AAA gaming sector.

The Leamington studio, known for its contributions to popular franchises such as Call of Duty: Infinite Warfare, Far Cry 5, and Tom Clancy’s The Division, will close its doors even after achieving success with these titles. The closure comes on the heels of disappointing sales figures for Star Wars Outlaws, a game developed in part by the Leamington team, fueling concerns about the company’s overall profitability. Furthermore, persistent delays for Assassin’s Creed Shadows have raised questions about meeting player expectations, contributing to increased scrutiny on Ubisoft’s operations.

According to a statement released to Eurogamer, the upcoming layoffs will impact a total of 185 employees. This news follows the company’s recent decision to deactivate the servers for XDefiant on June 3, 2025, just a year following its launch. Mark Rubin, the executive producer of XDefiant, noted that free-to-play games require considerable time to achieve profitability, highlighting financial pressures driving these layoffs. Ubisoft emphasized that the restructuring aligns with its emphasis on prioritizing key projects while simultaneously reducing operational costs.

Employment Impact of Ubisoft’s Recent Layoffs

The closure of the Leamington studio and the associated layoffs may signal ongoing financial strategies at Ubisoft. Recent reports indicate that Ubisoft and Tencent are exploring potential options for restructuring the company, which might include a division rather than a complete privatization. Such a split could not only increase Tencent’s stake in Ubisoft but also stabilize cash flow as the two companies manage the portfolio of Ubisoft’s assets together. However, the timeline for any significant shifts may hinge on how well Assassin’s Creed Shadows performs upon release.

The industry’s landscape reveals a troubling trend as Ubisoft’s recent decisions reflect a larger pattern of layoffs and studio closures. In 2024, other major corporations such as Microsoft laid off around 650 employees after cutting approximately 1, 900 earlier that year. Similarly, companies like Sony, Bungie, and Sega, along with numerous indie developers, have also faced financial adjustments due to the ongoing economic challenges impacting both large and small studios alike.

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