Ubisoft has announced significant layoffs as part of an ongoing cost-cutting strategy, including the permanent closure of its Leamington, UK studio and workforce reductions across several other locations. In total, 185 employees will be affected by this restructuring.

The decision comes as Ubisoft seeks to prioritize its projects and stabilize its operations following a series of underperforming game launches. The Leamington studio, originally founded in 2002 as FreeStyleGames and acquired by Ubisoft in 2017, was most recently a support hub for projects such as Tom Clancy’s The Division, Star Wars Outlaws, and Far Cry 5. A few Leamington employees will be retained under remote contracts.

Teams at Ubisoft Düsseldorf, Stockholm, and Newcastle’s Ubisoft Reflections will also be downsized. Ubisoft Düsseldorf, known for Anno and The Settlers, and Stockholm, which contributed to Avatar: Frontiers of Pandora, will both see their operations scaled back. Ubisoft Reflections, established in 1984 and later acquired by Ubisoft in 2006, had worked closely with Leamington on AAA projects.

The closures follow disappointing financial results for Ubisoft, driven by lackluster performances from high-budget titles such as Star Wars Outlaws and the delayed Assassin’s Creed Shadows. Live-service projects like XDefiant also failed to gain traction, leading to broader concerns about the company’s direction.

Since 2022, Ubisoft’s workforce has shrunk from 20,279 employees to 18,666 by late 2024. Ubisoft has repeatedly highlighted its intention to streamline operations and is reportedly exploring strategic options to maximize value for its stakeholders. Recent reports suggest that Chinese gaming giant Tencent has expressed interest in further investment, though discussions regarding control remain ongoing.

The launch of Assassin’s Creed Shadows on March 20 is now seen as a critical moment for the company’s future.