Ubisoft shares plummet after Assassin’s Creed maker cancels six games
Ubisoft Shares tumbled 33% Thursday morning after the maker of the “Assassin’s Creed” games announced a major organizational shakeup along with plans to shut down studios and cancel six games.
The changes come after delays to major releases and financial difficulties, as well as a years-long slide in stock prices in the wake of the Covid-19 pandemic.
The company said it expects to make an operating loss of about 1 billion euros ($1.17 billion) in the fiscal year ending in 2026, following a 650 million euro loss caused by restructuring. Ubisoft said in a statement on Wednesday evening that the sale of assets would be considered.
“Today’s market environment requires the Group to change step by step the way it organizes and operates,” Yves Guillemot, Founder and CEO of Ubisoft, said in a statement. he said.
“The refocusing of the portfolio will have a significant impact on the Group’s short-term financial trajectory, particularly in financial years 2026 and 2027, but this reset will strengthen the Group and enable it to regenerate with sustainable growth and strong cash generation.”
Ubisoft said studios in Halifax, Canada and Stockholm will close, while studios in Abu Dhabi, Helsinki and Malmö will close through restructuring.
The company expects cost-cutting measures to save 500 million euros ($580 million) and bring fixed costs to 1.25 billion euros ($1.46 billion) by March 2028, from 1.75 billion ($2.35 billion) in the fiscal year ending 2023.
Ubisoft said it expects net bookings of about 1.5 billion euros ($1.75 billion) for the fiscal year ending in 2026, a decrease of 330 million euros compared to previously published guidance.
