Ubisoft to employees on Tencent deal: 'We may not have all the detailed answers right now'

Ubisoft just made a deal with Tencent to spin off Ubisoft's most valuable franchises to a separate company. Employees are worried about what happens to the existing Ubisoft organization--will more layoffs ensue? Ubisoft management effectively tells workers to hold tight and wait for more info.

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Amid many quarters of disappointing results and growing financial pressure, Ubisoft and Tencent have teamed up. Tencent has invested $1.2 billion into a new Ubisoft subsidiary (off-handedly known as"Ubisoft 2") in exchange for 25% of financial stake in the new subsidiary.

Internal memos from Ubisoft's CEO have made employees antsy--those that remain after the culling of jobs as part of Ubisoft's strict cost-cutting plan. People are worried that more layoffs are coming.

In an internal memo from Ubisoft (acquired by Insider Gaming), studios executive Sophie de Waubert, who was hired on in 2022 to lead Ubisoft's worldwide production studios, says that the company simply doesn't have all the answers just yet.

Hello everyone,

I wanted to follow up immediately with all of you in Montreal, Quebec City, Sherbrooke, Saguenay, Barcelona, and Sofia after Yves' email regarding the new Business Unit that is being created.

First and foremost, I want to emphasize that the agreement we announced is a powerful enabler and an exciting opportunity for Ubisoft. It will help us accelerate our evolution and improve how we make games with greater focus and agility.

Tencent's investment is a strong testament to their trust in our ability to grow Assassin's Creed, Far Cry, and Rainbow Six. This is a direct result of the incredible work you've done in making these franchises iconic, as a lead or major codev studio.

I also want to be clear: if you're not currently working on these brands, it doesn't mean your work matters any less. This agreement will benefit all of Ubisoft, giving us the means to spark more innovation and creativity across the board. This marks the beginning of a new chapter, and you play a vital role in shaping it.

In the coming weeks and months, we will work hard to build the best organization possible - for Ubisoft, for our teams, and for our players.

Of course, this brings some uncertainty and questions. Right now, we may not have all the detailed answers, but we are committed to communicating with you transparently and regularly. Supporting you through this transition is the top priority for your local and your global leadership teams.

Don't hesitate to reach out to them and stay tuned locally; usual or dedicated "studio times" will be also good forums to keep you updated and answer your questions.