Key Highlights
- Ubisoft announced a major reorganization into five “Creative Houses” focused on specific genres.
- The restructuring led to the cancellation of six games, including the upcoming “Prince of Persia: The Sands of Time” remake.
- Ubisoft will return to a five-days-per-week in-office policy with an annual allowance for working from home.
Ubisoft’s Major Restructuring and Layoffs: Impact on Game Development
In a significant shift that has sent ripples through the gaming industry, French video game publisher Ubisoft has announced a sweeping reorganization of its operations. The company will be divided into five “Creative Houses,” each focused on specific creative genres to streamline development and enhance quality.
Introduction to the New Model
The restructuring, unveiled in a media call by Ubisoft leadership, is part of a broader effort to create more focused and efficient operations. According to CEO Yves Guillemot, this new model aims to produce “exceptional quality games” on two core pillars: Open World Adventures and GaaS-native experiences.
Impact on Game Development
The reorganization has come at a cost for some of Ubisoft’s ongoing projects. Six titles in development, including the highly anticipated “Prince of Persia: The Sands of Time” remake, have been canceled as part of the company’s portfolio refocus. This move reflects Ubisoft’s decision to accelerate cost reduction initiatives and rightsize its organization.
“To put the Creative Houses in the best conditions to succeed, we decided to refocus our portfolio with a meaningfully revised 3-year roadmap and accelerate our cost reductions initiatives to rightsize the organization,” Guillemot said during the media call. “We will discontinue several projects currently in development and provide additional time to certain games, to ensure enhanced quality and maximize long-term value.”
Financial and Operational Changes
As part of this reorganization, Ubisoft is returning to a five-days-per-week in-office policy for all teams. This move aims to balance the benefits of remote work with the need for in-person collaboration. The company will also provide an annual allowance for working from home days.
Industry Context
The gaming industry has become increasingly competitive and selective, particularly as development costs rise. Ubisoft’s decision comes at a time when many companies are grappling with similar challenges. The move to refocus on specific genres under dedicated leadership teams could position Ubisoft for long-term success in the ever-evolving landscape of video games.
Financial Results
In addition to announcing this restructuring, Ubisoft shared early results for its latest quarter, reporting €330 million in sales. Guillemot highlighted that these revenues were driven by “an overperformance linked to partnerships and reflecting a robust back-catalog.” The full earnings will be reported on February 12 as previously announced.
“Today we are announcing a major reset built to create the conditions for a return to sustainable growth over time,” Guillemot stated. “The portfolio refocus will have a significant impact on the Group’s short-term financial trajectory, particularly in fiscal years 2026 and 2027, but this reset will strengthen the Group and enable it to renew with sustainable growth and robust cash generation.”
The restructuring is expected to reshape Ubisoft for the long term. While difficult decisions have been made regarding projects and layoffs, the company remains committed to its vision of creating exceptional quality games through focused and decentralized creative organizations.
