Ubisoft to undergo more layoffs following major game cancellations

Last week, Ubisoft announced yet more internal changes to its business, alongside the cancellation of six games, including the highly anticipated remake of The Prince of Persia: The Sands of Time. Now, it appears that a round of layoffs is up next, with plans to cut as many as 200 roles at its Paris HQ. 

In a statement sent to IGN, Ubisoft confirmed its plans to cut as many as 200 roles in Paris, but it isn't jumping straight into layoffs right away. First, the company will offer a “voluntary mutual termination agreement”, hoping that 200 people effectively quit before they have to resort to official layoffs.

At this time, this is a proposal and has yet to be agreed upon by employee representatives or validated by French authorities. Based on reports last week, there are a number of developers looking to move on from Ubisoft following their recent restructuring efforts, so this goal may not be as difficult to achieve as it first appears.

Ubisoft shares dropped a further 30% last week, reaching a 15-year low, although it has rebounded a small amount since then. Moving forward, Ubisoft will be structured as a series of mini-companies, with each in charge of certain sectors, with one in charge of main franchises like Assassin's Creed and Far Cry, another for ‘casual and family friendly games', another for live-service titles like Rainbow Six Siege and so on. This new structure could also make it easier for Ubisoft to break-off and sell portions of the business without impacting its remaining studios.

KitGuru Says: Very few gamers still have faith in Ubisoft at this stage. The cancellation of a beloved classic like Prince of Persia may have a much bigger impact than Ubisoft executives suspected. 

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