Ubisoft Shares plunged 33% on Thursday morning after the maker of the “Assassin’s Creed” games announced a major organizational shakeup, along with plans to close the studio and discontinue 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 company said it expected to incur a 650 million euro write-down as a result of the restructuring, resulting in an operating loss of approximately 1 billion euros ($1.17 billion) in the fiscal year ending 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 material 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 solid cash generation.”
Ubisoft has announced that it will close its studios in Halifax and Stockholm, Canada, and reorganize its studios in Abu Dhabi, Helsinki, and Malmö.
The company expects its cost-cutting measures to result in savings of €500 million ($580 million) on a run-rate basis by March 2028, compared to €1.75 billion ($2.35 billion) in the year ending 2023, and fixed costs of €1.25 billion ($1.46 billion).
Ubisoft said it expects net bookings to be approximately 1.5 billion euros ($1.75 billion) in the fiscal year ending 2026, a decrease of 330 million euros compared to previously published guidance.
