The gaming industry giant Ubisoft has confirmed the closure of its Ubisoft Leamington studio in the UK and will lay off 185 employees across several locations, including Düsseldorf, Stockholm, and Ubisoft Reflections in Newcastle upon Tyne. This decision is the latest in a series of cost-cutting measures the company is implementing due to poor game sales and financial pressure.

Studio Closures and Mass Layoffs

In its statement released through gaming media, Ubisoft explained the reasons for this step: "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, as well as the permanent closure of the 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."

Ubisoft Leamington, formerly known as FreeStyleGames, was acquired from Activision in 2017. The studio played a significant supportive role in the development of major projects like Far Cry 5, Star Wars Outlaws, and Tom Clancy’s The Division. The studio initially gained popularity for developing the DJ Hero series.

The cuts will also impact the Ubisoft Düsseldorf studio, known for its work on Anno and Avatar: Frontiers of Pandora, Ubisoft Stockholm, which worked on Star Wars Outlaws, and Ubisoft Reflections, which participated in the development of AAA games like Driver and Assassin's Creed.

Financial Pressure and Strategic Changes

The layoffs come amid prolonged financial difficulties at Ubisoft, exacerbated by weak sales of recent games. The disappointing results of Star Wars Outlaws and multiple delays of Assassin's Creed Shadows have highlighted the numerous challenges facing the publisher. In 2024 alone, Ubisoft laid off over 1,700 employees, reducing the global workforce from 20,279 in 2022 to 18,666 by September 2024.

The company's latest measures aim to save around €200 million by 2026. Company management noted the necessity to "review and pursue various transformational strategic and capitalistic options to extract the best value for stakeholders". Reportedly, Tencent, a minority shareholder in Ubisoft, is in talks with the Guillemot family about a potential buyout or joint venture.

Ubisoft's Future Fate

All focus and hope now rest on Assassin's Creed Shadows, set for release on March 20, 2025. The game, which has been delayed several times, is seen as a key test of Ubisoft's ability to regain its footing in the competitive gaming market. CEO Yves Guillemot expressed optimism, stating that restructuring efforts are aimed at "create a better player experience and set Ubisoft on a positive track".

Despite Ubisoft remaining a renowned brand in the gaming world, recent difficulties and ongoing restructuring underscore the challenges of maintaining success in changing market conditions. The closure of Ubisoft Leamington and mass layoffs mark another chapter in this challenging period for the company. If the studio does not thoroughly rethink its operations and the upcoming Assassin's Creed series game fails, we may witness the ultimate downfall of Ubisoft.