Ubisoft announces new job cuts in effort to 'prioritize projects and reduce costs'

Ubisoft announces closure of studio resulting in 185 people being let go as part of the company's wider plan to 'prioritize projects and reduce costs'.

Ubisoft announces new job cuts in effort to 'prioritize projects and reduce costs'
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TL;DR: Ubisoft is closing its Leamington studio, affecting 185 employees, to prioritize projects and reduce costs, saving $206 million. This move aligns with ongoing restructurings and comes amid potential buyout talks with Tencent, which holds a 10% stake. Ubisoft aims to focus on successful ventures while maintaining control.

A quick Google of Ubisoft's stock price will paint a pretty bleak picture of the company, as multiple failed game releases have now resulted in the company now having to focus on what it really thinks will be successful for company.

Ubisoft announces new job cuts in effort to 'prioritize projects and reduce costs' 6151654
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Ubisoft has now confirmed that it's shutting Ubisoft Leamington, a support studio that contributed to titles such as Star Wars Outlaws and Far Cry 5. Leamington was acquired by Ubisoft in 2017, and according to a Ubisoft spokesperson who spoke to GameSpot, the decision to shut the studio is part of the company's goal to "prioritize projects and reduce costs" and its overarching plan to be "highly selective approach to investments." The studio's closure will impact 185 employees, and according to Ubisoft, the company expects to save $206 million USD as a result.

The shutting of the studio isn't surprising in the least as Ubisoft previously stated it's currently undergoing "targeted restructurings" of Ubisoft Dusseldorf, Ubisoft Stockholm, and Ubisoft Reflections. Moreover, the closure comes at a time when Ubisoft is in talks with Tencent for a potential buyout that will still have the Guillemot family maintain its control - its largest shareholder.

Currently, Tencent owns an approximate 10% stake in Ubisoft, and according to reports from December last year, Tencent is yet to greenlight the buyout as the publisher is pushing for a greater say in future decisions made by Ubisoft's board.