Ubisoft Plans to Cut 200 Jobs Following Recent Game Cancellations and Closures
Ubisoft is set to reduce its workforce by up to 200 positions at its Paris headquarters. This announcement comes shortly after the company revealed the cancellation of six games and the closure of multiple studios.
Details on Job Cuts and Restructuring
The proposed job loss affects approximately 18% of Ubisoft’s Paris staff, which currently numbers around 1,100 employees. This initiative will be executed through a voluntary collective redundancy process known as Rupture Conventionnelle Collective (RCC). Under this process, employees can agree to a mutual termination agreement.
Proposed Plans and Next Steps
A spokesperson from Ubisoft confirmed the ongoing discussions regarding the RCC. They emphasized that this proposal is not final until an agreement is reached with employee representatives and approved by French authorities.
- The RCC process is voluntary.
- It only applies to Ubisoft International employees with French contracts.
- No effect on other Ubisoft teams globally.
Currently, it is unclear what measures will be taken if the anticipated job reductions through the RCC are not realized.
Company Changes and Game Cancellations
This strategic shift follows recent organizational changes at Ubisoft, which included a return to a standard five-day office workweek. The decision to propose the RCC was reportedly made prior to this new policy.
In addition to the job cuts in Paris, Ubisoft recently announced it would close its studios in Stockholm and Halifax. The Stockholm location was involved in developing the game “Avatar: Frontiers of Pandora.” This follows the termination of several projects, including the highly anticipated “Prince of Persia: Sands of Time” remake.
Stock Market Impact
Ubisoft’s stock fell significantly, dropping by 40% after the announcements. The current stock value has decreased by 95% from its peak in January 2021. This downturn underscores the financial implications of the company’s restructuring efforts.
In summary, Ubisoft is navigating a challenging phase marked by significant job reductions, studio closures, and the cancellation of multiple game projects. The company aims to stabilize its operations while facing scrutiny from employees and the market.
