Ubisoft shut down one of its divisions for good. The company's restructuring is taking another toll
Ubisoft's Leamington Spa branch has officially closed.
Ubisoft officially closed its studio in Leamington Spa. As noticed by GamesIndustry.biz, this information was conveyed via a post on LinkedIn, in which team representatives thanked employees for their work. As we can read:
After many incredible years, we want to share the news that Ubisoft Leamington has officially closed its doors. We are beyond grateful to our talented team, whose creativity, ion and dedication have left a lasting mark on the games we’ve created, the memories we’ve shared and the community we’ve built in Leamington.
The decision to shut down isn't a surprise - already in January this year, Ubisoft announced a reduction in jobs. As a result, about 200 people were supposed to lose their jobs, both in Leamington and at the Ubisoft Reflections studio in Newcastle. The reduction also affected the studios in Düsseldorf and Stockholm. Some of the employees from Leamington were moved to remote contracts, but the majority of the team was let go. Now the studio has been closed for good.
Ubisoft reportedly justifies these actions as necessary for "prioritizing projects and reducing costs, which are to ensure long-term stability" for the company.
Ubisoft Leamington studio, formerly known as FreeStyleGames, was known as the developer of the DJ Hero series. The team also ed work on the publisher's large projects, such as Tom Clancy's The Division or Star Wars: Outlaws. According to unofficial sources, the studio was developing a new, unannounced brand before it closed.
Context of Ubisoft's reorganization
The closure of the studio is another element of Ubisoft's broader restructuring, which is causing increasing controversy among employees and investors. The publisher recently announced the creation of a new subsidiary, which is to manage the company's three biggest brands - Assassin’s Creed, Far Cry, and Rainbow Six. Tencent invested 1.16 billion euros in this entity, acquiring a 25% stake.
According to information revealed by Tom Henderson, minority shareholders, including AJ Investments, are demanding the convening of an extraordinary general meeting and are taking legal steps to renegotiate the of the agreement with the Chinese giant. Investors' anxiety is likely further deepened by decisions about layoffs and closing studios by the French company.
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- Ubisoft
- layoffs / employments
- FreeStyle Games / Ubisoft Leamington
- restructuring