Ubisoft Shares plunged 34% on Thursday after the maker of the video game “Assassin’s Creed” announced a major organizational shakeup, along with plans to close the studio and halt sales of six games.
The change comes after years of declining stock prices, delays in major releases and financial difficulties in the wake of the coronavirus pandemic.
The Paris-listed company said it expected a restructuring charge of 650 million euros in writedowns and an operating loss of about 1 billion euros ($1.17 billion) in the fiscal year ending in 2026. Ubisoft said in a statement Wednesday night that it would consider selling assets.
“Today’s market environment requires a gradual change in the way the group is organized and operates,” Yves Guillemot, founder and CEO of Ubisoft, said in a statement.
“The refocusing of the portfolio will have a significant impact on the Group’s short-term financial trajectory, particularly in 2026 and 2027, but this repositioning will strengthen the Group and enable it to regenerate with sustainable growth and strong cash generation.”
Ubisoft announced that its studios in Halifax, Nova Scotia, and Stockholm will be closed, and its studios in Abu Dhabi, United Arab Emirates, Helsinki, and Malmö, Sweden will be reorganized.
The company expects its cost-cutting measures to save €500 million by March 2028, with fixed costs of €1.25 billion on a run-rate basis (compared to €1.75 billion in the financial year ending 2023).
Ubisoft said it expects net bookings to be approximately 1.5 billion euros in the fiscal year ending 2026, a decrease of 330 million euros compared to previously published guidance.
