Ubisoft shares fell by 34% on Thursday after the maker of the Assassin's Creed video game announced a major restructuring, along with plans to close studios and axe six games, according to CNBC.
The changes come after years of falling share prices in the wake of the Covid-19 pandemic, major launch delays and financial difficulties.
The Paris-listed company said it expects to post an operating loss of about €1 billion ($1.17 billion) in the fiscal year ending in 2026, 650 million euro write-down due to restructuring. The company would consider selling assets, Ubisoft said in a statement Wednesday evening.
The current market environment requires the Group to radically change the way it is organized and operates
announced Yves Guillemot, founder and CEO of Ubisoft, in a press release.
„The portfolio realignment will have a significant impact on the Group's near-term financial trajectory, particularly in FY2026 and FY2027, but this reset will strengthen the Group and enable it to renew itself with sustainable growth and robust cash generation.”
Ubisoft said that its studios in Halifax, Nova Scotia and Stockholm will close, with restructuring to follow in Abu Dhabi, United Arab Emirates, Helsinki and Malmö, Sweden.
The company expects the cost-cutting measures to save €500 million and bring fixed costs to €1.25 billion on a current-paced basis by March 2028, compared with €1.75 billion in the financial year ending 2023.
Ubisoft said it now expects net bookings of around €1.5 billion for the financial year ending in 2026, a €330 million drop from previously issued forecasts.
