Ubisoft Announces Layoffs, Game Cancellations, and Return to Office Policy
Ubisoft, a prominent name in the video game industry, recently announced significant organizational changes. This includes layoffs, the cancellation of several titles, and a return-to-office policy. The company aims to create a more efficient and sustainable operational structure.
Major Restructuring Announced by Ubisoft
CEO Yves Guillemot revealed details of a strategic “reset” during a press release. He emphasized the necessity for these decisions to foster a focused organization amidst ongoing industry changes.
- Closure of several studios.
- Implementation of a “Creative House” structure.
- Focus on open-world adventures and game-as-service experiences.
Game Cancellations and Delays
As part of this restructuring, Ubisoft confirmed the cancellation of six games, including a highly anticipated adaptation of Prince of Persia. Additionally, seven other titles will experience delays to enhance their development process.
Return to Office Policy
In a significant policy shift, Ubisoft is mandating staff to return to the office five days a week. This change marks a notable transition from remote work, which was prevalent during the Covid pandemic.
Industry Context and Financial Goals
The video game sector is currently shifting as consumers transition from console gaming to mobile platforms, which now generate over $80 billion annually. Traditional game development has become both challenging and expensive, prompting a corporate focus on smaller, more adaptable projects.
Ubisoft has not disclosed the specific number of layoffs but confirmed this will be a “final” round of cutbacks. The objective is to achieve €200 million (approximately $240 million) in cost savings. Past reductions since 2022 have already yielded about €500 million in savings for the company.
These strategic changes reflect a broader trend within the tech industry, where companies adapt to evolving market demands while seeking operational efficiency.
