Ubisoft Leamington Shutters: Layoffs Ramp Up as Tencent Plans Revamp

by

Following several months of internal correspondence and organizational changes, Ubisoft Leamington has officially made public their decision to permanently shut down. This news was shared not through a grand press release or synchronized corporate communication strategy, but rather in a humble two-part post on the studio’s unverified Twitter account, indicating a potential decline in Ubisoft’s influence.

You’ll continue to be involved in game development within the UK. To stay updated on what our UK team is working on and their future projects, make sure to follow @UbiReflections!

For those who reside in Leamington, you’ll likely continue to encounter our remaining team within Leamington itself, as well as at local functions and gatherings.

Thank you for your support.

— Ubisoft Leamington (@UbiLeam) April 2, 2025

The studio known as Ubisoft Leamington has announced its closure. We’re incredibly proud of our talented team whose creativity and commitment have crafted the games we’ve shared, touching millions of gamers across the globe. Though this is the end of one chapter, we remain a part of the UK gaming industry. To stay informed about our UK team and future projects, follow @UbiReflections.

After playing significant roles in games like Star Wars Outlaws, Far Cry 5, and Skull and Bones for Ubisoft, the studio has come to a gentle and modest conclusion. However, signs of change were evident since January when Ubisoft unveiled their extensive restructuring plans affecting various European offices. Now, this restructuring process is complete, and it won’t be the only one.

Ubisoft’s January Layoff Announcement Was Just the Beginning

In January, Ubisoft revealed that they would be reducing 185 positions across their studios located in Leamington, Düsseldorf, Stockholm, and Reflections in Newcastle. Specifically, the studio in Leamington was closed entirely, while the other locations will undergo a downsizing.

Initially, the action was labeled as a cost-saving measure aimed at “prioritizing projects and securing long-term stability.” However, correspondence obtained by YouTubers SmashJT and Endymion unveiled the significant extent of these cuts. An internal email from Ubisoft’s top brass explained the rationale behind the layoffs, expressing remorse while simultaneously recognizing the necessity to “restructure studio operations” and foster a conducive environment for future ventures to thrive.

Previously mentioned, Ubisoft’s predicament wasn’t merely about cutting back unnecessary parts. Instead, it was a corporation hastily reducing its size in order to keep from sinking.

Shadows Has Fallen Short

Moving on to April, I found myself immersed in “Assassin’s Creed: Shadows,” a game Ubisoft had placed significant expectations upon. Despite an extensive marketing campaign and a delay to ensure the best possible release, the early reviews were mixed, and player interaction was lower than anticipated. According to external data sources, the number of concurrent players has yet to surpass previous franchise records, and sales in major markets are lackluster.

Ubisoft consistently states that “Assassin’s Creed: Shadows” has over 2 million players worldwide, a figure that initially appears impressive. However, upon closer examination of their wording, things become questionable. They refer to 2 million “players,” not 2 million units sold, leading some to suspect that Ubisoft includes its subscription members in this number, thereby potentially inflating the game’s perceived success to investors by making it seem more popular than it actually is.

This situation is quite troubling for Ubisoft, as it’s currently experiencing significant financial struggles. Since 2021, the company has seen a staggering loss of over 85% of its market value, plummeting from $12.17 billion to a mere $1.78 billion at the beginning of this year. Their cash reserves are rapidly decreasing, their debt is accumulating, and there seems to be no clear, effective strategy presented by the leadership to halt this downward spiral.

Tencent’s New Ubisoft Subsidiary Reshapes the Company—and Sparks Fear Internally

At Ubisoft, the proposed restructuring is no longer just an idea; it’s happening right now. And part of this change involves the creation of a new corporate structure in collaboration with the Chinese technology powerhouse, Tencent.

In the beginning of this year, it was publicly declared that Ubisoft would establish a new company, formed in collaboration with Tencent and partially managed by the Guillemot family. The objective is straightforward: to consolidate Ubisoft’s most profitable resources into a more streamlined, effective organization. Meanwhile, the original company will undergo changes such as closures, layoffs, and canceled projects to become leaner.

Major franchises such as “Assassin’s Creed” and “Rainbow Six,” along with certain development teams, have been consolidated into this new company. The remaining studios, either lacking current or upcoming successes, or considered as support teams, fear being let go. Ubisoft Leamington was one of the initial cuts, with more anticipated.

Inside the company, there’s a palpable sense of tension. Several employees have shared with various sources that the remaining teams are preparing for more rounds of layoffs. The underperformance of ‘Assassin’s Creed: Shadows’ and ‘Skull and Bones’ failing to meet even conservative expectations has left Ubisoft’s future plans uncertain at best. Employees at studios not considered top priority are said to be in the dark, worrying about sudden restructurings or layoffs with little warning.

This isn’t your typical cost-cutting measure; instead, it seems like a calculated disassembly is taking place. Tencent’s influence has caused Ubisoft to move away from wide-ranging, high-risk experimentation and towards more controlled, franchise-focused production. This could ensure the company’s short-term survival, but for many employees, it might also signify the end of their tenure with Ubisoft. It’s likely that Ubisoft Leamington won’t be the only studio to face closure.

Read More

2025-04-03 19:55