Ubisoft Shuts Down Studio Contributing to Major Games, Impacting 185 Employees

The video game sector is once again facing turbulence as Ubisoft announces significant layoffs following the closure of one of its support studios in the United Kingdom. Known for its globally distributed studios, the company is now taking steps to reduce expenses, culminating in the shutting down of a key facility while also downsizing another.

According to a report by Eurogamer, this latest round of cost-cutting measures will result in the loss of 185 jobs. This announcement arrives during a challenging period for Ubisoft, which has been scaling back its workforce since 2022. As of September 2024, the company employed 18, 666 individuals, a notable decline from the 20, 279 employees two years prior. Contributing to this situation are several recent underperforming releases, including “Star Wars Outlaws, ”which failed to meet revenue expectations.

Closure of Ubisoft’s Leamington Studio

Closure of One of Its Two UK Locations

Ubisoft’s Leamington Studio, acquired from Activision in 2017, was officially closed on Monday. This studio had gained recognition for its contributions as a support team for popular franchises such as Tom Clancy’s The Division series, Far Cry 5, Skull and Bones, and more recently, Star Wars Outlaws. Unfortunately, Star Wars Outlaws was a notable disappointment, significantly falling short of sales forecasts, underperforming even against its predecessor, Star Wars Jedi: Survivor, which launched in 2023.

Founded in 2002 as FreeStyleGames, Ubisoft Leamington originally made a name for itself under Activision by developing the DJ Hero series. It later assumed the role of a support studio for major titles like Call of Duty and Guitar Hero. As part of its realignment towards cost-cutting, Ubisoft Leamington was the only studio impacted by this latest decision, a move that coincides with further delays in the release of Assassin’s Creed Shadows, now scheduled for March.

Ubisoft Attributes Layoffs to “Targeted Restructuring”

Prioritizing Cost-Cutting Initiatives

A Ubisoft spokesperson elaborated to Eurogamer that this workforce reduction and the closing of Ubisoft Leamington arise from several “targeted restructurings”across its studios. Other studios affected include Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections, all of which supported various AAA projects. Notably, Ubisoft Düsseldorf contributed to the development of Anno and The Settlers, while Ubisoft Stockholm previously collaborated with Massive Entertainment on Avatar: Frontiers of Pandora.

As we move into 2025, Ubisoft faces a precarious financial landscape, with much hinging on the success of Assassin’s Creed Shadows. While recent previews have generated some optimism, it remains uncertain whether a single game can reverse the company’s fortunes. Ubisoft’s announcements, particularly during last year’s Ubisoft Forward, were met with disappointment, further complicated by the departure of vital talent instrumental in its major AAA titles. The future trajectory of Ubisoft will depend on more than just one successful release.

Sources: Eurogamer

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