Ubisoft Lays Off 185 Employees Amid Restructuring, Tencent Buyout Rumors Surface
Ubisoft has announced the layoff of 185 employees, including the closure of Ubisoft Leamington.
Image via Ubisoft
Ubisoft, one of the biggest names in gaming, has announced a major restructuring that will result in 185 job cuts. The move is part of a broader effort to prioritize projects and reduce costs, raising concerns about the company's future and the industry at large.
Ubisoft Shuts Down Leamington Studio
The most significant change comes with the permanent closure of Ubisoft Leamington, formerly known as FreeStyleGames. While a handful of employees will retain remote positions, the majority face an uncertain future.
Beyond Leamington, Ubisoft is also downsizing operations at several European studios, including Düsseldorf (formerly Blue Byte), Stockholm, and Newcastle-based Ubisoft Reflections.
A Ubisoft spokesperson provided a statement to Eurogamer:
"As part of our ongoing efforts to prioritize projects and reduce costs that ensure long-term stability at Ubisoft, we have announced targeted restructurings at Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections, as well as the permanent closure of the Ubisoft Leamington site. Unfortunately, this will impact 185 employees overall. We are deeply grateful for their contributions and are committed to supporting them through this transition."
While the company has pledged to support affected employees, the specifics of that support remain unclear. With the global gaming industry experiencing widespread layoffs—10,500 jobs lost in 2023 and another 14,600 in 2024 the outlook remains bleak.
A Changing Industry
Ubisoft's restructuring is a reflection of broader challenges in the gaming industry. Rising development costs, shifting consumer demand, and economic pressures have forced companies to make tough decisions. As the industry evolves, studios are cutting back on projects that no longer align with their long-term vision.
For Ubisoft, this means focusing on its strongest franchises. The upcoming Assassin’s Creed Shadows now carries even greater importance, as its success could shape the company’s direction moving forward.
Tencent Buyout Rumors Gain Momentum
Adding another layer of uncertainty, Ubisoft is reportedly in talks with Chinese tech giant Tencent regarding a potential buyout. The move could see Ubisoft transition into a privately held company, allowing its founding Guillemot family to regain control.
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According to Reuters, Tencent already Ubisoft’s second-largest shareholder with a 10% stake—wants greater influence over the company’s board and decision-making. If the deal materializes, it could significantly impact Ubisoft’s strategy in the years ahead.
What Lies Ahead for Ubisoft?
As Ubisoft navigates this turbulent period, the company appears to be doubling down on its most successful franchises while trimming less profitable ventures. Whether this restructuring secures long-term stability remains to be seen.
For now, one thing is certain: Ubisoft, like the gaming industry itself, is undergoing a massive transformation—one that will define its future in the years to come.
