Ubisoft's shares fell by 35% in trading on Thursday morning after the French publisher and developer, known for the Assassin's Creed series, announced a major business reorganization. The company plans to close several studios and cancel six projects.
In an official statement, Ubisoft said it expects an operating loss of around €1 billion in the financial year ending in 2026. A significant role in this was played by the write-down of assets worth €650 million related to the restructuring. The company also does not rule out the possible sale of some assets.
The company expects that cost-cutting measures will save around €500 million and reduce fixed costs to €1.25 billion by March 2028. For comparison, in the financial year ending in 2023, fixed costs amounted to €1.75 billion.
Ubisoft founder and CEO Yves Guillemot noted that the current market situation requires radical changes in the company's structure and operating model. According to him, the revision of the project portfolio will negatively affect financial performance in the short term, especially in the 2026 and 2027 financial years, but in the future should strengthen Ubisoft's position and return it to sustainable growth and stable cash generation.