Ubisoft Shares Plummet 37% a Day After Restructuring Announcement

Ubisoft's stock experienced a sharp decline on Thursday morning following the announcement of significant internal changes and project cancellations. The French gaming giant's stock price dropped approximately 37%, exacerbating existing challenges for the company. As of Thursday, Ubisoft's stock hovered around 4.15, a substantial decrease from Wednesday's closing price of 6.64. This represents the lowest share price since 2008. While the company's stock peaked at 107.90 in July 2018, buoyed by successful releases like Assassin's Creed Odyssey and Far Cry 5, today's price reflects a 95.9% loss from that high. Ubisoft revealed on Wednesday that it had divided its creative teams into five groups, a restructuring plan developed over the past year to revitalize its creative output after a series of poorly received games led to stock depreciation. The company also recently sold a stake to Tencent. Investors seemingly reacted negatively to both announcements, interpreting them as indicators of underlying instability and uncertainty about future direction. Shares plummeted by more than a third within hours.

Compounding investor concerns, Ubisoft also announced projected losses of approximately 1 billion for the fiscal year ending March 2026, including a 650 million impact from restructuring. As part of these changes, the company has canceled six games, including the Prince of Persia: The Sands of Time remake, and delayed seven others. In addition, Ubisoft is accelerating its cost-cutting plan, aiming for an additional 200 million in savings over the next two years. While these cuts are significant, Ubisoft has not yet specified details regarding potential job losses. According to CFO Frederick Duguet, some employees will transition to other major projects, while others may depart the company, creating unease among the workforce.

Ubisoft Employees Strike Amidst Tensions Over Job Losses, Working Conditions, and Canceled Projects

Following this uncertainty, the French union Solidaires Informatique called for a nationwide strike among Ubisoft staff, criticizing management's disconnect from employee concerns and deteriorating working conditions. The union stated on social media that trust between management and workers had eroded due to constant restructuring, job losses, abrupt termination of remote work arrangements, and wages failing to keep pace with inflation. The union characterized the situation as a "sink or swim" scenario for employees, who are allegedly bearing the consequences of executive decisions. The strike aims to address worker mental and physical health, strained by chaotic production cycles, frequent changes in direction, and project instability. Wednesday's news that Prince of Persia: The Sands of Time remake was canceled heightened these existing tensions.

In Case You Missed It

In a whirlwind of changes in the gaming world, Ubisoft has been making waves with several surprising announcements recently. Carlos Mendoza, in his January 22nd article "Ubisoft Cancels Prince of Persia: The Sands of Time Remake Plus 5 Other Games", revealed that the publisher has scrapped six projects due to quality concerns and a shift towards open-world experiences, including the highly anticipated remake of the classic Prince of Persia title Ubisoft Cancels Prince of Persia: The Sands of Time Remake Plus 5 Other Games. But amidst these cancellations, there's some good news too - Sophie Laurent's piece "Beyond Good & Evil 2 Survived Amidst Ubisoft's Cancellations" Beyond Good & Evil 2 Survived Amidst Ubisoft's Cancellations tells us that the long-anticipated sequel is still alive and kicking, despite its hefty development costs. Meanwhile, Ahmed Hassan provides insight into Ubisoft's ambitious restructuring plans in his article "Ubisoft: Razing it All to Rebuild Better?" Ubisoft: Razing it All to Rebuild Better? The Publisher Reinvents Its Organization and Business Model. He explores the publisher's decision to split into five autonomous Creative Houses and their focus on open-world adventures, which could significantly impact their future trajectory. It's an exciting time in gaming with all these changes happening!