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EXCLUSIVE: Insider Exposes Internal Ubisoft 'Layoffs' Email

Writer's picture: Smash JTSmash JT

Ubisoft’s Downfall: Exclusive Insider Info on Layoffs and Financial Struggles

A picture of the now closed office, from the Ubisoft Leamington Official Facebook Page.
A picture of the now closed office, from the Ubisoft Leamington Official Facebook Page.

Ubisoft, once a beacon of innovation and creativity in the gaming industry many years ago, has been continuing its steep decline with the recent announcement of significant studio closures and widespread layoffs throughout the company. The company’s struggles, marked pretty clearly by an over abundance of failed game launches, internal controversies, and strategic missteps, have culminated into a series of actions that signals to everyone that they've entered into a 'desperate attempt' mode, trying to salvage what remains of the once-gigantic and thriving empire.

Ubisoft recently announced the closure of Ubisoft Leamington, a UK-based studio that'd been part of the Ubisoft family since acquiring it from Activision back in 2017. Originally back then known as FreeStyleGames, Ubisoft Leamington employed around 50 dedicated professionals who contributed to massively failed titles like Star Wars Outlaws and Skull and Bones.


The shutdown of this studio not only marks the end of an era for the employees, but also, goes to show the broader challenges Ubisoft has been facing while maintaining its portfolio of games while they crumble...

The decision to shut down the Ubisoft Leamington team was part of a larger restructuring plan that's going to affect other Ubisoft offices, including those in Düsseldorf, Stockholm, and Newcastle-upon-Tyne, home to Ubisoft Reflections. Across all of these locations, a total of 185 employees will be out of jobs, as the company seeks to reduce costs and prioritize projects that promise long-term stability by any means possible at this point.


Amid the public announcements, I, along with friend of the channel Endymion, have also been contacted by an insider with exclusive info about additional layoffs from the Stockholm studio branch of Ubisoft. This individual, who I'll keep anonymous for obvious reasons, provided a screenshot from an internal Ubisoft email that sheds more light on the company’s rationale for the drastic cuts.

According to the email, the cuts primarily affecting its Stockholm studio are part of broader efforts to secure long-term stability for Ubisoft. Approximately 20 roles in Stockholm are impacted, with the company stating that this difficult decision is necessary to refine its strategy and support future projects. To assist affected employees, Ubisoft said they're offering severance packages tailored to individual circumstances, career transition resources through external partners, and well-being support to help with both emotional and professional challenges during this transition.

Beyond Stockholm, layoffs are also taking place in other Ubisoft locations. Ubisoft Düsseldorf in Germany is expected to see around 65 positions made redundant, while in the UK, Ubisoft Leamington will be permanently closed. Additionally, approximately 100 roles are expected to be cut across Ubisoft Leamington and Ubisoft Reflections.


It's pretty tiny writing so here it is in text below:


Dear Team,
As you all know - the past year has been marked by significant challenges for Ubisoft and our industry - challenges that have necessitated changes in the form of targeted restructurings across our global organization and production studios.
Together, we’ve navigated these uncertain times with resilience and an unwavering commitment to deliver exceptional games and drive innovation. However, to secure our long-term stability and future success, we must continue to make some very difficult decisions.
Restructuring the Stockholm Studio
This morning, we announced a restructuring of our Stockholm studio. This decision was not made lightly. However, it is a necessary step to refine the Studio strategy and secure long-term stability.
The Stockholm team plays a vital role in our future, and for their vision to succeed, we must create the right environment for their projects to thrive.
We estimate that approximately 20 roles in the Stockholm studio may be impacted. We know that this decision impacts more than just the studio and its projects; it impacts people—our colleagues, teammates, and friends.
We deeply understand how difficult this is, and supporting everyone through this transition is our utmost priority. We are committed to providing:
- Severance packages tailored to individual circumstances.
- Career transition resources through an external partner to help affected team members explore new opportunities.
- Well-being support to provide emotional and professional guidance during this time.
Updates from Zone 4 Today
In addition to the restructuring announced in Stockholm, similar efforts have also been shared today within Zone 4.
In Germany, Ubisoft Düsseldorf has announced that around 65 positions may be made redundant. Meanwhile, in the UK, we will see the closure of the Ubisoft Leamington site, and around 100 roles proposed to be made redundant across Ubisoft Leamington and Ubisoft Reflections.
A global update on this will be available through an article on Agora, which will be published around noon tomorrow.
Moving Forward
As we move forward after today’s news, I want to thank you all. Your resilience, creativity, and passion are what make our Zone extraordinary. As we work through this transition, let’s continue to support one another and stay focused on the path ahead. Together, I am confident we will emerge stronger, ready to deliver on the bold ambitions we have been building.
If you have any questions or concerns, please don’t hesitate to reach out to your manager, HR, or me directly.

Despite the somewhat significant workforce reductions going on here, Ubisoft’s leadership remains optimistic, expressing gratitude for employees’ resilience, creativity, and dedication. If you're to believe they're telling the truth, I got a bridge to sell you... The company encouraged the remaining workforce to stay focused and support one another as they navigate this transition, reaffirming confidence that Ubisoft will emerge stronger and ready to deliver on its ambitions.


This wave of layoffs is a stark manifestation of Ubisoft’s ongoing financial woes. The company’s market capitalization has plummeted by approximately 85% since January 2021, falling from $12.17 billion to barely just $1.78 billion in January 2025. This WILD decline reflects a loss of investor confidence and highlights the severe financial instability that Ubisoft has been grappling with as of late. The company’s increasing debt, dwindling cash reserves, and poor game performance have created a perfect storm, leaving Ubisoft teetering on the brink of bankruptcy.


The strategic missteps that led to Ubisoft’s downfall are multifaceted. Recent game releases, like Star Wars: Outlaws, have failed to come anywhere close to meeting market expectations, with preorders falling significantly short and current sales figures remaining undisclosed—Which - let's be honest here - is a sign of poor performance overall. The decision to release Outlaws on Steam shortly after launch, diverging from the exclusive Ubisoft Connect platform strategy used for successful titles like Assassin’s Creed Valhalla, also points directly to a lack of confidence in distribution channels and an inability to maintain any kind of consistency with how they market their brands.

Management and organizational inefficiencies have only made things worse. The shutdown of XDefiant and the costly development of Skull & Bones, which is reportedly estimated to have cost Ubisoft between $650 and $850 million over a decade, which, holy crap... highlights some pretty serious mismanagement and poor resource allocations. These projects have drained Ubisoft’s financial reserves without delivering any of the expected returns, leaving the company vulnerable and struggling to stay afloat.


Then we have Ubisoft’s intense focus on Diversity, Equity, and Inclusion (DEI) initiatives - and those have alienated a large portion of their core fanbase. This insane cult-like cultural overreach has directly contributed to the erosion of Ubisoft’s market confidence, further complicating any kind of path to recovery.

The imminent release of Assassin’s Creed: Shadows, now delayed until March 20 in a move that reportedly cost the company upwards of an additional 20 million dollars, serves as a critical juncture for Ubisoft. If the game fails to perform to some pretty high expectations, it could be the final nail in the coffin for Ubisoft....and let's be honest - at this point - that feels inevitable. That level of shortcoming would most likely trigger even more layoffs and destroy the company’s financial situation, sealing their fate in game company failures.


Ubisoft’s recent actions—shutting down studios, laying off hundreds of employees, and struggling with failed game releases—are far more symptomatic of a company in deep crisis than anything else. The drastic decline in market capitalization, coupled with mounting debt and organizational inefficiencies has directly left Ubisoft vulnerable to potential bankruptcy. With insiders stepping forward to share information about the company’s inner workings to YouTubers to get the word out, it’s clear here that the situation is even more dire than anyone could have previously imagined...


~Smash

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5 Comments


Cal89
Cal89
Feb 03

Stop the DEI hires and agenda/message pushing. Hire experts not activists and the rest will sort itself out. It's really not rocket science.

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I was shocked to hear about Ubisoft's layoffs and studio closures it’s sad to see such a gaming giant struggle. Job cuts like these remind me how unstable industries can be. When I face challenges in my studies, I make sure to seek help. If I ever need to buy statistics assignment, I’d turn to experts for accuracy

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Well i think it's official. With these closures and layoffs, Ubisoft is in it's death throws. I hope whatever Guillimote was after, he got in the end because it cost him his entire company. I'm just excited to see who winds up with the Assassin's Creed license. It's gotta be better than Ubislop.

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Mr0303
Mr0303
Jan 28

Good. Now for the remaining Ubisoft studios.

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PythonBacon
PythonBacon
Jan 28

Just the tip of the iceberg, the entire company is hanging by a thread. I’m excited to see whatever is going to happen to Ubislop to actually happen to Ubislop. Let the fireworks begin!

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