Shares of “Ubisoft” experienced a sharp decline of 33% today, following the announcement by the developer of the “Assassin’s Creed” game series of a broad organizational restructuring plan. This plan includes the closure of a number of studios and the cancellation of the development of six games.
The company clarified that this step comes after years of continuous decline in the value of the stock since the beginning of the COVID-19 pandemic, amid a series of postponements of major releases, in addition to increasing financial pressures. “Ubisoft” expects to record operating losses of about one billion euros in the fiscal year ending in 2026, after writing off 650 million euros related to the restructuring. The company added that it will consider selling some of its assets.
CEO Yves Guillemot stated that the “current market environment” requires a radical change in organization and operation. He pointed out that refocusing the business portfolio will negatively affect financial performance in 2026 and 2027, but he considered it a necessary step to correct the course and return to “sustainable growth” and achieve strong cash flows.
On the operational front, “Ubisoft” announced the closure of its studios in Halifax, Canada, and Stockholm, with structural adjustments in the Abu Dhabi, Helsinki, and Malmö studios. The company expects that the cost reduction measures will achieve savings of approximately 500 million euros, and reduce fixed costs to 1.25 billion euros annually by March 2028, compared to 1.75 billion euros in the fiscal year that ended in 2023.
Regarding future expectations, “Ubisoft” has lowered its estimates for net bookings to approximately 1.5 billion euros for the fiscal year ending in 2026, which is 330 million euros less than previous expectations.
