Ubisoft Shares Drop After Major Shake-Up
Ubisoft shares fell 34% on Thursday after the Assassin’s Creed creator announced a major reorganization. The company also plans to close studios and cancel six upcoming games.
Financial Struggles and Losses
The changes follow years of declining stock prices, worsened by pandemic delays and financial challenges. Ubisoft expects an operating loss of around 1 billion euros ($1.17 billion) for the 2026 financial year. This follows a 650 million euro write-down linked to the restructuring. The company may also sell assets, according to a statement.
CEO Comments
“Today’s market environment requires the Group to change how it operates,” said Yves Guillemot, Ubisoft’s founder and CEO. “The portfolio refocus will affect our short-term finances but will strengthen the company for sustainable growth and strong cash generation.”
Studio Closures and Restructuring
Ubisoft will close studios in Halifax, Nova Scotia, and Stockholm. Restructuring will occur in studios located in Abu Dhabi, Helsinki, and Malmö.
The company expects cost-cutting measures to save 500 million euros. Fixed costs should drop to 1.25 billion euros by March 2028, down from 1.75 billion euros in 2023.
Revenue Outlook
Ubisoft now expects net bookings of around 1.5 billion euros for 2026, a decline of 330 million euros from its prior guidance.
