Key Takeaways
- Ubisoft closed its Leamington Spa studio in the UK, leading to 185 job losses across multiple locations including Düsseldorf and Stockholm.
- The support studio, acquired from Activision in 2017, previously contributed to major titles like Far Cry 5 and Avatar.
- Closure is part of Ubisoft’s cost-cutting strategy to reduce expenses by €200 million while focusing on established franchises.
- A small number of affected employees will continue working through remote contracts, with relocation support offered to others.
- The closure reflects broader gaming industry trends, with 41% of developers reporting impact from recent layoffs.
As part of its ongoing restructuring efforts, Ubisoft has announced the closure of its Leamington Spa support studio in the UK, affecting 185 employees across multiple locations. The impact extends beyond Leamington to include staff reductions in Düsseldorf, Stockholm, and Newcastle’s Ubisoft Reflections studio, marking a significant alteration in the company’s operational strategy.
The Leamington studio, which Ubisoft acquired from Activision in 2017, has played a vital role in developing popular titles like Far Cry 5 and providing support for high-profile projects including Avatar and the upcoming Star Wars Outlaws. While a small number of Leamington staff will continue their work through remote contracts, the majority face job losses. The studio previously contributed to The Division and other major franchises. Ubisoft has committed to providing relocation support for affected employees during this challenging period. CEO Yves Guillemot and management are exploring various options for maximizing shareholder value moving forward.
Financial pressures and evolving industry dynamics have driven Ubisoft’s decision to streamline its operations. The company aims to reduce costs by €200 million as part of its broader restructuring plan, focusing resources on established franchises such as Assassin’s Creed and Far Cry. A recent survey from the Game Developers Conference revealed that 41% of developers are feeling the impact of industry-wide layoffs. This strategic shift reflects the competitive nature of the gaming industry and the need for financial efficiency.
The closure signals a potential change in how Ubisoft approaches game development moving forward. The company may increase its reliance on outsourcing and partnerships with external studios while maintaining its commitment to live service games. Upcoming projects like Assassin’s Creed Codename Red and Assassin’s Creed Codename Hexe remain priorities for the publisher. Affected employees will receive severance packages and resources to assist in their transition to new opportunities.
The timing of the announcement, early in 2025, follows a series of cost-cutting measures implemented throughout 2024. With Ubisoft’s next earnings report scheduled for February 13, industry observers anticipate more details about the company’s future direction and the full impact of these restructuring efforts on its game development pipeline.
The closure represents a significant moment in Ubisoft’s history and reflects broader industry trends where major publishers are reassessing their operational structures. While the immediate impact on affected employees is substantial, the long-term implications for Ubisoft’s game development capabilities and project management approach remain to be seen. The company’s focus on core franchises and streamlined operations suggests a more cautious approach to new projects, even as it continues to pursue ambitious titles in established series.
This restructuring decision highlights the ongoing challenges faced by major game publishers in balancing creative ambitions with financial sustainability. As Ubisoft adapts to changing market conditions, the industry watches closely to see how these changes will influence the company’s future output and its position in the competitive gaming landscape.
