Ubisoft has confirmed plans to lay off 185 employees in Europe as a result of wider restructuring efforts.
The move will see the company closeUbisoftLeamington, which is based in Leamington Spa, England, and make cuts at Ubisoft Düsseldorf, Ubisoft Stockholm and Ubisoft Reflections.
Ubisoft Leamington was previously known as FreeStyleGames – the studio behind the DJ Hero series – before it was acquired by Ubisoft fromActivisionin 2017. It has since worked mainly as a support studio on games such asFar Cry5, Avatar, andStar Wars Outlaws.
Ubisoft said in a statement provided to VGC: “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 and the permanent closure of Ubisoft Leamington site.
“Unfortunately, this should impact 185 employees overall. We are deeply grateful for their contributions and are committed to supporting them through this transition”
Following a number of underperforming releases and a worsening financial outlook,Ubisoft said this monththat it’s taking “decisive steps” to reshape the company and is “actively exploring various strategic and capitalistic options to unlock the full value potential” of its assets.
The following week, it was claimed thatTencentand Ubisoft’s founding Guillemot family areconsidering the creation of a new venturecontaining some Ubisoft assets.
Citing people familiar with the situation,Bloombergclaimed the Chinese tech firm and Ubisoft’s founders are thinking of creating a new entity, which they will then move certain Ubisoft assets over to in an attempt to boost Ubisoft’s value.
The Guillemot family currently owns 14% of Ubisoft’s shares, while Tencent owns 9.99%.
Last October, Bloomberg reported that Tencent and the Guillemots had been speaking with advisersto explore ways to stabilize Ubisoft, following a year in which its market value more than halved.
Those discussions were said to have included the possibility of the pair teaming up to take Ubisoft private, although talks were said to be at an early stage at the time.
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A Reuters report published last month claimed that Ubisoft shareholderswere considering how to structure a possible buyout of the company, without reducing the Guillemot family’s control.
Tencent was claimed to be undecided over whether to participate in that buyout and increase its stake in the company, reportedly because it has asked for a greater say on future board decisions. According to Reuters, discussions between the two are ongoing as Tencent also wants to prevent any potential hostile takeover of Ubisoft by other investors.
