Stock drops 34% following studio closures and cancellations
Ubisoft shares fell 34% on Thursday after the French video game publisher announced a sweeping organizational overhaul that includes studio closures and the cancellation of six games. The sharp selloff reflects investor concern over the company’s financial outlook and the scale of the restructuring.
The Paris-listed group has struggled for several years following the pandemic, facing repeated delays to major releases and ongoing financial pressure. Those challenges have weighed heavily on Ubisoft’s share price even before the latest announcement.
Heavy losses expected through 2026
Ubisoft said it expects to post an operating loss of around €1 billion for the financial year ending 2026. The forecast follows a €650 million write-down linked to the restructuring program. In a statement released Wednesday evening, the company said it would also consider selling assets as part of its efforts to stabilize the business.
Founder and chief executive Yves Guillemot said the current market conditions require a fundamental rethink of how the group is organized and operates. He acknowledged that the reset would weigh on results in the short term but argued it was necessary to restore sustainable growth and cash generation.
Studios to close across multiple regions
As part of the plan, Ubisoft confirmed that studios in Halifax, Nova Scotia, and Stockholm will be shut down. Additional restructurings are planned at locations in Abu Dhabi, Helsinki and Malmö, affecting teams across Europe and the Middle East.
The company said these measures are designed to streamline operations and refocus its development portfolio, though they will have a significant human and creative impact.
Cost savings and revised guidance
Ubisoft expects the restructuring to generate cost savings of about €500 million. Fixed costs are projected to fall to €1.25 billion on a run-rate basis by March 2028, down from €1.75 billion in the financial year ending 2023.
At the same time, the group cut its outlook for net bookings. Ubisoft now forecasts around €1.5 billion in net bookings for the financial year ending 2026, €330 million less than previously guided, underscoring the near-term financial hit from the reset.