An internal Ubisoft email, leaked to the public, reveals top management explaining the reasons behind the recent shutdown of some studios and job cuts to the remaining staff members.
Once highly respected in the video game world, Ubisoft is currently facing a challenging time marked by an unexpected surge of studio closures and job cuts. The most recent setback includes the shutdown of Ubisoft Leamington and the dismissal of 185 employees from various European branches.
At the heart of grasping the severity of these transformations is a confidential memo circulated among Ubisoft staff members, revealing the company’s precarious situation and explaining the reasoning behind these dramatic actions. Notable gaming analysts SmashJT and Endymion have shared this memo along with the unique insights it contains.
A Snapshot of Decline
The steep drop in Ubisoft’s worth has been quite astonishing. In just four years, from January 2021 to January 2025, the company’s market value fell from an impressive $12.17 billion to a much lower $1.78 billion. This represents approximately an 85% decrease, indicating significant investor doubt and suggesting serious financial troubles for the company.
The reasons behind this downfall are complex and varied, ranging from unsuccessful game releases, tactical errors, accumulating financial problems, and internal operational issues.
The Internal Email: A Glimpse into Ubisoft’s Strategy
In the core of Ubisoft’s reorganization plan is a company-wide email sent to all employees detailing the need for strategic changes in studios worldwide. The message first acknowledges the tough hurdles encountered over the past year, but also praises the tenacity and dedication of Ubisoft’s workforce. It then emphasizes that tough choices must be made to ensure the company’s lasting strength and future triumph.
The email outlines changes in our Stockholm studio, which will influence around 20 positions. It underscores the significance of establishing an optimal setting for upcoming ventures, even as it regrettably affects our coworkers and friends. Ubisoft is committed to providing personalized severance deals, resources for career transition, and support for emotional well-being to help employees cope during this challenging phase.
Beyond Stockholm, the email reveals identical actions in Ubisoft Düsseldorf and the shutdown of Ubisoft Leamington in the UK. This decision affects a total of 185 workers at these locations who are facing job loss. Ubisoft’s management expresses sincere regret over these choices, acknowledging the significant contributions made by employees and offering assistance during this transitional period.
Here is the full transcript of the email:
Dear Team,
Over the last year, Ubisoft and our entire industry have faced notable difficulties. To address these issues, we’ve been compelled to make strategic adjustments, which include restructuring various parts of our worldwide organization and production studios.
Working hand in hand, we’ve braved through turbulent periods with tenacity, ensuring top-quality gaming experiences and fostering creativity. Yet, for the sake of our lasting strength and prosperity, we need to persist in confronting tough choices.
Restructuring the Stockholm Studio
This morning, we’ve unveiled a reorganization plan for our Stockholm branch. Making this call wasn’t easy, but it’s crucial for fine-tuning our studio strategy and ensuring our long-term viability.
For the success of our future with the Stockholm team, it’s crucial that we establish an ideal setting where their initiatives can flourish effectively.
Approximately 20 positions in the Stockholm studio might be affected by our estimation. It’s important to recognize that this choice goes beyond just the studio and its ventures; it affects individuals – our coworkers, team members, and companions.
We recognize how challenging this situation might be for everyone, and our top concern is assisting everyone as they navigate through this change. To that end, we are dedicated to offering:
1. Customized severance packages based on unique situations.
2. Career transition resources in collaboration with an external partner, enabling affected team members to explore fresh possibilities.
3. Well-being support that encompasses both emotional and professional advice during this period.
Updates from Zone 4 Today
Beyond the restructuring detailed in Stockholm, similar initiatives are being revealed today within Zone 4 as well.
In Germany, Ubisoft Düsseldorf has disclosed that about 65 jobs could potentially be eliminated. Simultaneously, in the UK, it’s been announced that Ubisoft Leamington will shut down, and approximately 100 positions are proposed for termination across both Ubisoft Leamington and Ubisoft Reflections.
Information about the latest developments will be shared via an article on Agora, scheduled for release around midday tomorrow.
Moving Forward
Moving on from today’s developments, I would like to express my gratitude to everyone. It is your resilience, ingenuity, and enthusiasm that set our Zone apart. As we navigate this change together, let us continue to uplift each other and keep our sights on the road ahead. United, I am optimistic that we will come out of this stronger, equipped to fulfill the ambitious goals we have been nurturing.
Should you find yourself with any queries or apprehensions, feel free to contact your supervisor, Human Resources department, or myself personally.
Or:
If something’s on your mind or if you need clarification about anything, don’t worry, just let me know, your manager, or HR know directly.
This email outlines the tough decisions Ubisoft has needed to make in an effort to restore stability within their operations. Yet, as pointed out by SmashJT and Endymion, these actions seem less like a calculated strategy for rejuvenating the company and more like emergency measures to stop a ship from sinking.
SmashJT and Endymion: Voices from the Frontline
In the midst of all the official statements, YouTube heavyweights SmashJT and Endymion have offered a more intimate and candid viewpoint on Ubisoft’s predicament.
Among the numerous public declarations, prominent YouTubers SmashJT and Endymion have shared their personal and unfiltered thoughts about Ubisoft’s dilemma.
In a comprehensive critique, SmashJT spoke out against Ubisoft’s management and strategic approach, labeling their efforts as “desperate maneuvers” to revive their former prosperous domain. He pointed out the broader difficulties Ubisoft encounters, linking them to a string of unsuccessful game releases, internal scandals, and tactical blunders. As per SmashJT’s analysis, the shutdown of Ubisoft Leamington and the resulting job losses are indicative of more profound, systemic problems within the company.
He cites tactical blunders associated with games such as “Star Wars: Outlaws”, coupled with significant managerial problems.
In his piece about the topic, SmashJT pointed out that Ubisoft is deeply committed to their Diversity, Equity, and Inclusion (DEI) efforts. However, he argued that this has driven away a significant portion of their loyal fanbase. This extreme emphasis on cultural issues, reminiscent of a cult, has significantly damaged Ubisoft’s credibility in the market, making their road to recovery more challenging.
The Future of Assassin’s Creed Shadows
The upcoming launch of “Assassin’s Creed Shadows,” now scheduled for March 20, presents a significant turning point in Ubisoft’s schedule.
According to recent reports, the game’s performance is critically important as it’s estimated to have cost the company an extra $20 million. As exclusively reported by That Park Place, sources claim that a significant portion of this money was used to revamp the game’s storyline and refocus it away from Yasuke, the black samurai character who was initially thought to be historically accurate as the main character.
If Shadows doesn’t live up to high standards, it might lead to more job cuts and worsen Ubisoft’s already precarious financial situation, possibly pushing the company towards collapse as it experiences a continued decline.
Ubisoft: A Company on the Brink
Ubisoft’s latest moves such as closing studios, letting go of numerous workers, and experiencing troubles with disappointing game launches, show clear signs of a corporation grappling with significant challenges or difficulties.
The significant drop in market value along with growing debt and internal inefficiencies has made Ubisoft susceptible to possible bankruptcy. As more information about the company emerges from within and gamers watch the collapse of what was once a powerful industry leader, Ubisoft’s future is shrouded in doubt.
2025 finds me, as a movie critic of the gaming industry, standing before Ubisoft, teetering at a critical juncture. The specter of fading into obscurity looms large if this titan of creativity can’t swiftly enact changes to fortify its financial health and reclaim the faith of investors and gamers alike.
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2025-01-29 21:56