Ubisoft Shares plunged 33% on Thursday morning after the maker of the Assassin’s Creed games announced major organizational changes, including plans to close studios and ax six games.
The changes come after the covid-19 pandemic has caused share prices to plummet, key issuance delays and financial struggle.
The company said it expects an operating loss of about 1 billion euros ($1.17 billion) in the fiscal year ending 2026, after a 650 million euro write-down caused by restructuring. It will consider selling the assets, Ubisoft said in a statement late Wednesday.
“Today’s market conditions require a change in the way the Group is organized and operates,” Ubisoft co-founder and CEO Yves Guillemot said in a statement.
“The realignment of the portfolio will have a significant impact on the Group’s short-term financial trajectory, particularly in the financial years 2026 and 2027, but this restructuring will strengthen the Group and allow it to renew itself with sustainable growth and solid cash generation.”
Ubisoft said studios in Halifax, Canada and Stockholm will be closed, while restructuring in Abu Dhabi, Helsinki and Malmö will take place.
The company expects cost-cutting measures to save 500 million euros ($580 million) and fixed costs could reach 1.25 billion euros ($1.46 billion) by March 2028, compared with 1.75 billion ($2.35 billion) in the fiscal year ending 2023.
Ubisoft said it now expects net bookings of around 1.5 billion euros ($1.75 billion) for the fiscal year ending 2026, down 330 million euros from previously released guidance.