Following a series of setbacks, Ubisoft is closing a subsidiary studio and cutting staff elsewhere, laying off some 185 employees in the latest cost-cutting measure. Ubisoft Leamington, located in the English town of Royal Leamington Spa, no longer exists as the publisher cuts the studio, which employed 50 people. Employees in Stockholm, Dusseldorf (Germany) and Newcastle (England) are also being laid off (Ubisoft Reflections).
“As part of our ongoing efforts to prioritize projects and reduce costs to ensure Ubisoft’s long-term sustainability, we have announced targeted restructurings at Ubisoft Düsseldorf, Ubisoft Stockholm, and Ubisoft Reflections, as well as the permanent closure of the Ubisoft Leamington site,” Ubisoft said in a statement published on Eurogamer. “Unfortunately, this will affect 185 employees in total. We are deeply grateful for their contributions and stand ready to support them during this transition.”
Ubisoft bought Leamington Studio from Activision in 2017. Previously, it was known as FreeStyleGames, and its team worked on Guitar Hero Live and the DJ Hero series. Since joining Ubisoft, the studio has been involved in the development of Tom Clancy’s The Division, Star Wars Outlaws, Skull and Bones, and Far Cry 5.
Recently, Ubisoft has been on a tear as the company deals with the aftermath of several failed games, such as Star Wars Outlaws, which did not reach the planned sales level. Prince of Persia: The Lost Crown also failed to meet Ubisoft’s expectations, and the company transferred many of the game’s developers to other teams. Ubisoft is also closing XDefiant in the coming months, as part of this decision, the publisher is closing three studios and laying off 277 employees. According to Eurogamer, by the end of September, the number of Ubisoft employees decreased from 20,279 to 18,666.
Perhaps due to these recent developments, there have been numerous reports that Ubisoft is looking for a buyer or that it may form a joint venture with Tencent, including some of its assets. Earlier this month, the company said (PDF) that it will “continue to make significant cost reductions” and that it has “appointed leading advisors to consider and pursue various transformational strategic and capitalization options to deliver the best value to stakeholders.”
Suffice it to say, a lot depends on the future of Assassin’s Creed Shadows. Assassin’s Creed has been a reliably profitable series for Ubisoft, and at this point it’s probably the company’s flagship franchise. According to my first impressions, the game looks good enough and plays well enough for what the company needs, and it seems like it will satisfy both longtime fans and newcomers to the series. There’s a chance that Shadows could be a success for the company, but it’s a very tall order for a single game to right a ship as large and unstable as Ubisoft’s.
