Ubisoft Continues Reorganization with $800 Million Cost Reduction Plan
Ubisoft has announced an ambitious reorganization plan aimed at reducing costs by $800 million by 2028. This initiative comes in response to significant challenges in the competitive gaming market. The company will close studios, reduce staff, and abandon six video game titles while postponing the release of seven others.
Significant Financial Adjustments
Recently, Ubisoft revised its financial forecasts for the third quarter of the 2025-2026 fiscal year. The updated sales prediction now stands at €1.5 billion (approximately $2.4 billion CAD), a sharp decline from the previous estimate of €330 million (about $530 million CAD). Additionally, the company expects an operational loss of €1 billion ($1.6 billion CAD) for the same fiscal period.
Studio Closures and Job Reductions
- Ubisoft has announced the closure of its studios in Halifax and Stockholm.
- The company is decentralizing its decision-making, splitting its production into five “Creative Houses,” each responsible for major gaming titles.
While the firm has remained vague regarding further studio closures, the new plan includes an additional cost reduction of at least €200 million ($325 million CAD) over the next two years. This adds to the total savings of €500 million ($800 million CAD) since beginning these efforts in 2022.
Restructuring Game Development
The reorganization will enhance decision-making processes throughout game development cycles. Among the new Creative Houses, Vantage Studios will manage popular franchises such as Assassin’s Creed, Far Cry, and Rainbow Six, predominantly developed in Quebec.
Despite these changes, the headquarters will retain final authority over decision-making. Ubisoft aims to redefine its relationship with players, product derivatives, and title performances through these established Creative Houses.
Impact on Employees and Future Plans
As of late 2025, Ubisoft employed approximately 17,000 staff globally. The company has not disclosed how the cost-cutting measures will affect its workforce, but further details are expected in February alongside financial results.
Moreover, all employees will return to full-time office work, encouraging face-to-face collaboration to boost creativity. Ubisoft promises to share additional insights into its restructuring, focusing on the most lucrative and promising games later in 2026.
Game Cancellations and Delays
- Six games, including a remake of Prince of Persia: The Sands of Time, have been canceled.
- Seven others, intended for release by 2026, have been delayed.
Ubisoft’s strategy will concentrate on two promising categories: open-world adventure games and sustainable online environments under the “Games-as-a-Service” (GaaS) model. This approach allows for ongoing revenue through subscriptions and microtransactions.
According to Yves Guillemot, the CEO and co-founder of Ubisoft, these changes will significantly affect the company’s short-term financial trajectory but are essential for fostering sustainable growth and improving cash generation in the long run.
