In a dramatic corporate restructuring, global gaming giant Ubisoft has announced sweeping cuts affecting thousands of employees and multiple game development projects. The French video game publisher confirmed it is eliminating approximately 3,000 positions and cancelling six upcoming titles, including the highly anticipated Prince of Persia: The Sands of Time remake that fans have awaited for years.
Major Restructuring Across Global Operations
The significant workforce reduction represents nearly 15% of Ubisoft's total staff, bringing their employee count down to around 17,000 worldwide. As part of this restructuring initiative, the company has permanently closed its development studios in Stockholm, Sweden and Halifax, Canada, while implementing substantial reorganisations at three additional studio locations.
Game Cancellations and Financial Impact
Ubisoft has confirmed the cancellation of six video game projects, though only the Prince of Persia: The Sands of Time remake has been publicly identified. Among the discontinued titles are four unannounced projects, including three based on new intellectual property and one mobile game. Financial analysts have noted the substantial financial implications of these cancellations.
Lionel Melka, partner at Swann Capital, commented: "Cancelling games means flushing a lot of money down the toilet. This represents significant sunk development costs that won't be recovered." He further warned about potential reputational damage, noting: "It's going to do a lot of damage to their reputation with fans given the very strong emotional aspect to players' relationships with games."
Leadership Strategy and Employee Concerns
Ubisoft CEO Yves Guillemot defended the drastic measures as necessary to "create the conditions for a return to sustainable growth." The company plans to reorganise its remaining studios by genre expertise, a strategy praised by industry observers.
Laurent Michaud, games industry economist, noted: "Bosses' plan to group studios by genre expertise is nevertheless an excellent idea. Ubisoft is betting on its top asset: its skilled workers."
However, employees expressed deep concerns about the human impact. Cedric, an employee at Ubisoft's Paris studio, shared: "I'm very worried about the future of the group. I can understand the idea of switching to a more financially sustainable model, but it's coming at the cost of a lot of layoffs and studio closures."
Industry Implications and Future Outlook
The scale of Ubisoft's restructuring has raised questions about the broader health of the video game industry and the company's future direction. Melka described the moves as evidence that Ubisoft is "in survival mode," expressing concern about "a spiral where as things get worse and worse, more and more people leave."
Michaud highlighted Ubisoft's importance to the French gaming ecosystem, stating: "France's video games ecosystem owes a huge amount to Ubisoft. It would be very bad news if it couldn't manage." The company's ability to navigate this challenging period will be closely watched by industry analysts, employees, and gaming enthusiasts worldwide.
