Ubisoft Conducting Another Round Of Employee Layoffs

Just as you thought the wave of layoffs in the gaming industry would end, Ubisoft today confirmed it’ll be removing another 45 jobs. The French publisher blamed this latest round of cuts on having to “restructure” its global publishing and Asia-Pacific operations.

The Cuts Keep Coming

According to reports from Ethan Gach at Dead Game News, Ubisoft is eliminating 45 more positions across its global publishing and Asia-Pacific divisions. When reached for comment, the company stated:

“Over the past few months, every team within Ubisoft has been exploring ways to streamline our operations and enhance our collective efficiency so that we are better positioned for success in the long term. In this context, today we announced that we are further reorganizing our Global Publishing central and APAC structures to adapt them to the market evolution with a more efficient and agile approach. Those changes will impact 45 positions overall.”

Ubisoft claims the layoffs are “not decisions taken lightly” and that it is providing “comprehensive support” for affected employees. The publisher also expressed “utmost gratitude and respect for their many contributions to the company.”

Latest Blows in a Brutal Year

This culling follows Ubisoft laying off more than 1,000 employees last November – mostly from its Canadian studios. It’s not just cuts in the games industry itself – an estimated 10,500 people lost jobs in 2023 alone.

2024 is shaping up to be just as brutal. Only three months in, the games biz has already seen around 8,000 more announced layoffs according to GameSpot’s tracking. Just last week, companies like Smilegate, Nintendo, Certain Affinity, and Sega all made significant staffing reductions.

The downsizing axe has not spared even gaming’s biggest players. Microsoft axed 1,900 workers from its business division in January. Sony followed suit a month later with 900 more cuts. Publishers, developers, platform holders – no sector has gone unscathed.

Ubisoft’s 2024 Release Slate

With the headcount cuts gone, Ubisoft still has an ambitious pipeline of titles coming this fiscal year. In March, the open-world pirate game Skull and Bones was released to mixed reviews but high player engagement. The long-awaited Prince of Persia remake The Lost Crown also dropped recently.

Up next is the delayed hero shooter XDefiant, currently slated for the latter half of 2024. Ubisoft is also banking on Star Wars Outlaws and the new Assassin’s Creed Red to sustain its momentum.

Ubisoft will release its latest financial results in May with additional details on its 2024-2025 release calendar. But based on these latest cuts, it appears expectations for next year are being tempered.

The New Industry Reality? Lean and Mean

Unfortunately, mass layoffs could become the new normal as game companies adapt to changing market conditions. Rising production costs, economic headwinds, and industry contraction are all contributing factors.

For many studios and publishers, doing more with less is the new mantra.Code words like “reduce headcounts, streamline operations” and “increase efficiency” apply to companies looking to run leaner.

It is a bitter truth, yet one that more game makers might end up confronting in the near future. Ubisoft is clearly not shying away from making tough decisions to resize its workforce. Expect other major players to follow a similar cost-cutting playbook– creativity and growth be damned.