Ubisoft shares plunged almost 27% after the French video game publisher unveiled a sweeping restructuring plan that includes studio closures and the cancellation of multiple projects.
The market reaction reflected deep investor concern over the scale of the changes and the financial pain expected in the coming years.
The Assassin’s Creed maker has struggled since the pandemic era, with repeated release delays, weaker-than-expected launches, and mounting cost pressures eroding confidence.
Those challenges culminated in Thursday’s sell-off, which wiped more than a third off the company’s market value in a single session.
Heavy Losses And Asset Review
Ubisoft said it expects to post an operating loss of around 1 billion euros for the financial year ending in 2026.
That outlook includes a 650 million euro write-down directly linked to the restructuring programme.
The company also confirmed it is considering selling assets as part of efforts to stabilize its balance sheet.
Management acknowledged that the reset will weigh heavily on near-term performance, particularly across the next two financial years.
“Today’s market environment requires that the Group step-changes how it is organized and operates,” Yves Guillemot said.
Strategic Reset Underway
Ubisoft said it will refocus its portfolio and reduce complexity across its global operations.
“The portfolio refocus will have a significant impact on the Group’s short-term financial trajectory, particularly in fiscal years 2026 and 2027,” Guillemot said.
“But this reset will strengthen the Group and enable it to renew with sustainable growth and robust cash generation.”
The company framed the overhaul as necessary to restore long-term competitiveness in a crowded and increasingly costly games market.
Studio Closures And Restructuring
As part of the shake-up, Ubisoft confirmed it will shut studios in Halifax, Nova Scotia, and Stockholm.
Additional restructuring will take place at locations in Abu Dhabi, Helsinki, and Malmö.
The company did not disclose the total number of roles affected but said the changes were essential to align resources with priority franchises.
Six games have been axed entirely, reflecting a sharper focus on fewer, higher-impact releases.
Cost-Cutting Targets
Ubisoft expects the restructuring to deliver 500 million euros in cost savings over the medium term.
Fixed costs are projected to fall to 1.25 billion euros on a run-rate basis by March 2028.
That compares with fixed costs of around 1.75 billion euros in the financial year ending 2023.
Management said tighter cost controls will be critical to improving cash generation and restoring financial flexibility.
Outlook Reset And Lower Guidance
The company also lowered its expectations for future revenue.
Ubisoft now forecasts net bookings of roughly 1.5 billion euros for the financial year ending 2026.
That represents a reduction of about 330 million euros compared with its previous guidance.
Investors remain cautious as the company embarks on a difficult transition, with execution risk high and recovery unlikely to be immediate.
