Ubisoft Closes Studio, Eliminating 185 Jobs In Latest Round Of Cuts

The challenging times at Ubisoft continue, as the French gaming company has announced it is closing one studio and downsizing others in the firm’s latest round of cost-cutting that will see about 185 people lose their jobs. Ubisoft underwent multiple waves of layoffs in 2024 as well.

Ubisoft has confirmed that it is closing Ubisoft Leamington, a support studio that contributed to titles like Star Wars Outlaws and Far Cry 5. The team created the DJ Hero series for Activision before being acquired by Ubisoft in 2017.

A spokesperson for Ubisoft told GameSpot that is is closing Ubisoft Leamington as part of the company’s ongoing mission to “prioritize projects and reduce costs.” In addition to closing Ubisoft Leamington, Ubisoft is undergoing “targeted restructurings” of Ubisoft Dusseldorf, Ubisoft Stockholm, and Ubisoft Reflections.

“Unfortunately, this should impact 185 employees overall. We are deeply grateful for their contributions and are committed to supporting them through this transition,” Ubisoft said.

This dramatic action wasn’t totally unexpected, as Ubisoft said in a memo to investors in early January that it was continuing to look for ways to “drive significant cost reductions” in the business. Ubisoft added that it will take a “highly selective approach to investments” during this period. In total, Ubisoft said it expects to see a reduction of €200 million ($206 million USD) as part of this plan.

This is all happening amid reports that have suggested Ubisoft may be working with Tencent on some kind of business arrangement to solidify its future. During a conference call, Ubisoft CEO Yves Guillemot said he sees “several potential paths” for the company and its franchises going forward to maximize shareholder value.

On the call, Ubisoft declined to comment on the report of the company potentially selling to Tencent, but management said it is “exploring different options,” adding, “We can’t say more.”

Ubisoft will releases its latest earnings report on February 13, at which time the company may share additional information about its future outlook. The company enters a “quiet period” beginning January 29, so no one should expect Ubisoft to make specific announcements about its future business outlook between January 29 and February 13.