Ubisoft CEO Yves Guillemot has publicly acknowledged employee concerns following the announcement of a significant corporate restructuring plan. The video game publisher, headquartered in Montreuil, France, confirmed the new strategy this week, which includes studio closures, project cancellations, and a final round of cost cutting measures aimed at achieving 200 million euros in savings.
The executive stated he “fully understands the legitimate concerns of our teams” in response to the widespread changes. Guillemot characterized the reorganization as a necessary step to streamline operations and refocus the company’s creative direction, but conceded that “changes of this scale naturally raise questions and create tension” within the workforce.
Details of the Restructuring Plan
The restructuring involves consolidating Ubisoft’s creative teams into a new structure called “Creative Houses.” This model is designed to centralize expertise and foster collaboration across key franchises and technologies. As part of this consolidation, the company has canceled several unannounced game projects and will close a number of its studios.
This announcement represents the final phase of a broader cost reduction initiative that Ubisoft first outlined in early 2023. The goal is to drive the targeted 200 million euros in annual savings over the next two years. The plan follows a previous round of layoffs affecting over 1,000 positions globally, which occurred last year.
Industry Context and Financial Pressure
Ubisoft’s moves align with a wider trend of consolidation and cost cutting within the video game industry over the past 18 months. Numerous major publishers and developers have undertaken similar restructuring efforts, often citing a post pandemic market correction, rising development costs, and a more selective player base.
The company has faced specific financial challenges, including delays for major titles like “Skull and Bones” and the perceived underperformance of some recent releases. The restructuring is positioned as a strategic pivot to strengthen Ubisoft’s core portfolio, which includes flagship series such as “Assassin’s Creed,” “Far Cry,” and “Tom Clancy’s Rainbow Six.”
Employee and Union Reaction
While Guillemot’s statement aims to address internal anxiety, employee representatives and unions have expressed apprehension. The scale of the studio closures and the potential for further job losses remain primary points of concern for staff across Ubisoft’s international offices.
In France, where labor laws require extensive consultation for large scale redundancies, Ubisoft will enter a formal process with worker councils. The company has stated it will provide support and try to facilitate internal mobility for affected employees where possible.
Forward Looking Strategy
Looking ahead, Ubisoft’s leadership expects the new Creative Houses structure to accelerate development cycles and improve quality control. The company has emphasized a renewed focus on its most valuable intellectual properties and live service games, which provide recurring revenue.
Official timelines for the studio closures and the full implementation of the new structure are expected to be communicated to staff in the coming weeks. The next major financial update from Ubisoft, which will likely detail the impact of this restructuring, is scheduled for the company’s next quarterly earnings report.
Source: GamesIndustry.biz
