Why is ubisoft laying off employees?

[The-Divine-Cartographer]

ubisoft leamington is now permanently closed. They announced earlier that they are permanently closing, wtf?

[Isa]

Originally posted by The-Divine-Cartographer:

ubisoft leamington is now permanently closed. They announced earlier that they are permanently closing, wtf?

I understand you clowns live in the past, but didn't think it went as far as thinking January = April.

[JKDos]

Life. Employees get laid off. It happens every day in every industry.

"You will only find what you look for" - Shifu Tzu

[longjohn119]

Originally posted by The-Divine-Cartographer:

ubisoft leamington is now permanently closed. They announced earlier that they are permanently closing, wtf?

The Covid Game Bubble deflated and layoffs have been industry wide for over a year now.

And with Trumponomics destroying the world wide economy it's only going to get worse and not just for gaming and tech

[Kand]

Originally posted by Isa:

Originally posted by The-Divine-Cartographer:

ubisoft leamington is now permanently closed. They announced earlier that they are permanently closing, wtf?

I understand you clowns live in the past, but didn't think it went as far as thinking January = April.

They're in the end credits at 24:17.

https://www.youtube.com/watch?v=4Cm4tQOBPxA

[Shin Happens]

Because Ubi has been bleeding money left and right last year with various super expensive flops and is struggling to survive and desperately needs to save money and restructure? Plus what the others said, Covid bubble deflating etc.

[n1claren]

Originally posted by JKDos:

Life. Employees get laid off. It happens every day in every industry.

"You will only find what you look for" - Shifu Tzu

Why is Toshiba laying off employees?
Why is Microsoft laying off employees?
Why is Dell laying off employees?
Why is Facebook laying off employees?
Why is Intel laying off employees?
Why is Amazon laying off employees?

Why is OP not understanding the real world?

[AdahnGorion]

Ubisoft have 4 billion in debt.
They have are very bloated and they have recently started a reconstruction of the corporation, where Tencent will gain more influence.

In short.

Ubisoft have created a new subsidiary with the 3 big IP´s (that basically generate most of their revenue) and Tencent have invested 25% into this. This will be a seperate entity in the future or be sold (that is why you do this reconstruction)

Studios/Staff that are not involved with the big 3 IP´s face massive uncertainty now, as Ubisoft will seek to "clean out" the bloat. This will help Ubisoft lower cost and the stock will rise and if they also sell (other IP´s like Rayman, Prince of Persia, etc) then they could earn enough to cover the high debt (that they struggle to pay back due to high interest rate)

The corporation is not in danger by itself. Mainly because other corporations would either gobble them up or invest in them (like Tencent and AJ) but there are major reconstructions going on.


Ubisoft wants to release 2-3 AC games a year. They think people are very interested in buying them and paying for MTX. One of the AC games that release this year will feature live-service on a higher level (its a fighting game)

R6 will get a new game as well and that is supposed to generate consistently due to mtx/live-service.. basically their MP milking cow.
Then we have Farcry, that will most likely be a IP where they release a game every year (this can be a main, spinoff, minor one, but within the IP) and they will have MTX as well.


Ubisoft´s new aim is to generate 2 billion euro in gross revenue every year from the new subsidiary (highly unlikely in my opinion) it will be interesting to see what happens and if consumers return to spend lots of cash.

[Megachonkster]

Originally posted by AdahnGorion:

Ubisoft have 4 billion in debt.
They have are very bloated and they have recently started a reconstruction of the corporation, where Tencent will gain more influence.

In short.

Ubisoft have created a new subsidiary with the 3 big IP´s (that basically generate most of their revenue) and Tencent have invested 25% into this. This will be a seperate entity in the future or be sold (that is why you do this reconstruction)

Studios/Staff that are not involved with the big 3 IP´s face massive uncertainty now, as Ubisoft will seek to "clean out" the bloat. This will help Ubisoft lower cost and the stock will rise and if they also sell (other IP´s like Rayman, Prince of Persia, etc) then they could earn enough to cover the high debt (that they struggle to pay back due to high interest rate)

The corporation is not in danger by itself. Mainly because other corporations would either gobble them up or invest in them (like Tencent and AJ) but there are major reconstructions going on.


Ubisoft wants to release 2-3 AC games a year. They think people are very interested in buying them and paying for MTX. One of the AC games that release this year will feature live-service on a higher level (its a fighting game)

R6 will get a new game as well and that is supposed to generate consistently due to mtx/live-service.. basically their MP milking cow.
Then we have Farcry, that will most likely be a IP where they release a game every year (this can be a main, spinoff, minor one, but within the IP) and they will have MTX as well.


Ubisoft´s new aim is to generate 2 billion euro in gross revenue every year from the new subsidiary (highly unlikely in my opinion) it will be interesting to see what happens and if consumers return to spend lots of cash.

Yeah, i heard something about creating a new entiy, move all the good assets to that, and dump all the bad ones in the Ubisoft. Wait out the ♥♥♥♥♥♥♥♥♥ and then move the good assets back to Ubisoft.

It sounds like CEOs whipping their golden parachutes again.

[ZIGS]

"Why is ubisoft laying off employees?"

Because AC Shadows was a success

[Dr.Abscondus]

Ubisoft grew in a very disorganised and haphazard way by buying up small game studios much in the way that EA did. The small studios were used to provide some development for Ubisoft games in the way that a small auto parts company provides parts to GM. Leamington (formerly Freestyle Games) was that type of subsidiary. The last game they worked on was Tom Clancy's The Division. Dead wood, gone, and nothing to do with AC Shadows. Ubisoft has a lot of these little subsidiaries. They're inefficient and unprofitable. Why have a small studio in England (Leamington) working on a game being developed by another Ubisoft subsidiary in Sweden (Massive Games) when it makes more sense to do all the work in Sweden by hiring more staff there? You can expect a lot more of them to get the axe. Sorry Ubisoft haters, it's not personal, just business.

[AdahnGorion]

Originally posted by Megachonkster:

Originally posted by AdahnGorion:

Ubisoft have 4 billion in debt.
They have are very bloated and they have recently started a reconstruction of the corporation, where Tencent will gain more influence.

In short.

Ubisoft have created a new subsidiary with the 3 big IP´s (that basically generate most of their revenue) and Tencent have invested 25% into this. This will be a seperate entity in the future or be sold (that is why you do this reconstruction)

Studios/Staff that are not involved with the big 3 IP´s face massive uncertainty now, as Ubisoft will seek to "clean out" the bloat. This will help Ubisoft lower cost and the stock will rise and if they also sell (other IP´s like Rayman, Prince of Persia, etc) then they could earn enough to cover the high debt (that they struggle to pay back due to high interest rate)

The corporation is not in danger by itself. Mainly because other corporations would either gobble them up or invest in them (like Tencent and AJ) but there are major reconstructions going on.


Ubisoft wants to release 2-3 AC games a year. They think people are very interested in buying them and paying for MTX. One of the AC games that release this year will feature live-service on a higher level (its a fighting game)

R6 will get a new game as well and that is supposed to generate consistently due to mtx/live-service.. basically their MP milking cow.
Then we have Farcry, that will most likely be a IP where they release a game every year (this can be a main, spinoff, minor one, but within the IP) and they will have MTX as well.


Ubisoft´s new aim is to generate 2 billion euro in gross revenue every year from the new subsidiary (highly unlikely in my opinion) it will be interesting to see what happens and if consumers return to spend lots of cash.

Yeah, i heard something about creating a new entiy, move all the good assets to that, and dump all the bad ones in the Ubisoft. Wait out the ♥♥♥♥♥♥♥♥♥ and then move the good assets back to Ubisoft.

It sounds like CEOs whipping their golden parachutes again.

They already did this. Basically The Guillemot made an insider deal with Tencent, where those two take control over the 3 biggest revenue earning IP´s in a "new subsidiary" that in a few years could break free.....

The other investors with AJ investments leading atm, is talking about legal action, as the Guillemot basically removed all worth from Ubisoft and into the subisdiary....
This will most likely end poorly and I can see the company blowing up due to this.... That or Tencent downright buying the IP´s or even Ubisoft.

[WolfEisberg]

Originally posted by ZIGS:

"Why is ubisoft laying off employees?"

Because AC Shadows was a success

Lemington was laid off back in January, before the release of Shadows

https://www.eurogamer.net/ubisoft-announces-studio-closure-as-it-lays-off-185-staff

[CzUSMC]

After AC Shadows faced huge backlash in November of Last year Ubisoft knew they had to delay the game and fire the employee's who created such a terrible game. This is why they planned on firing them in January they gave them the holidays still on payroll to be nice. Now they're trying to weather the storm they themselves have created.
More will be terminated in the coming months. 700 million a year in employee expenses while having no profits is just not sustainable for any company.

Create bad games = More debt and no profit with more cost.

Ubi devs = "We created another multi million dollar flop Ubi please pay us!"

Ubisoft - "Checks Wallet nothing but a flea jumps out".
Y'all fired.

Ubi Devs = "Ok lets go find another studio to bankrupt".

[AdahnGorion]

Originally posted by WolfEisberg:

Originally posted by ZIGS:

"Why is ubisoft laying off employees?"

Because AC Shadows was a success

Lemington was laid off back in January, before the release of Shadows

https://www.eurogamer.net/ubisoft-announces-studio-closure-as-it-lays-off-185-staff

Incorrect.
The studio had a staff reduction, but it was not closed.
Now it is completely closed.

[jam2k2]

So no more patches or DLCs ...?