Home News Ubisoft Rehaul and Layoffs Demanded by Minor Stakeholder

Ubisoft Rehaul and Layoffs Demanded by Minor Stakeholder

by George Mar 18,2025

Ubisoft Rehaul and Layoffs Demanded by Minor Stakeholder

Following recent setbacks and disappointing performance of its latest releases, Ubisoft faces pressure from a minority investor, Aj Investment, demanding a management overhaul and staff reductions.

Ubisoft Minority Investor Calls for Company Restructuring

Aj Investment Claims Last Year's 10% Workforce Reduction Insufficient

Ubisoft Rehaul and Layoffs Demanded by Minor Stakeholder

Aj Investment, a significant Ubisoft shareholder, has publicly urged the company's board, including CEO Yves Guillemot and Tencent, to take the company private and install new leadership. In an open letter, they expressed deep dissatisfaction with Ubisoft's current performance and strategic direction.

The letter cites the delay of key titles like Rainbow Six Siege and The Division to late March 2025, a lowered Q2 2024 revenue outlook, and overall poor performance as major concerns. Aj Investment directly proposes a new CEO to optimize costs and studio structure for improved agility and competitiveness. One key proposal states: "Change of the current management. Start hiring process of NEW CEO who will optimise the cost and studio structure for more agile and competitive company as Ubisoft should be."

This pressure has impacted Ubisoft's share price, which reportedly plummeted over 50% in the past year, according to the Wall Street Journal. Ubisoft has declined to comment on the letter.

Ubisoft Rehaul and Layoffs Demanded by Minor Stakeholder

Aj Investment criticizes Ubisoft's management, stating the company's low valuation is due to mismanagement and that shareholders are being taken advantage of by the Guillemot family and Tencent. They accuse the management of prioritizing short-term gains over long-term strategic planning and delivering exceptional gaming experiences.

Aj Investment's Juraj Krupa further voiced disappointment over the cancellation of The Division Heartland and criticized the underwhelming reception of Skull and Bones and Prince of Persia: The Lost Crown. He highlighted the underperformance of several key franchises, stating: "Rainbow Siege is doing great, nevertheless franchises such Rayman, Splinter Cell, For Honor, Watch Dogs are sleeping for years despite these games are loved by millions of players all around the world," and noting concerns about the rushed release of Star Wars Outlaws despite high anticipation.

Ubisoft's reliance on Star Wars Outlaws to revitalize its performance has been unsuccessful, contributing to a share price decline to its lowest point since 2015 and a more than 30% drop year-to-date.

Ubisoft Rehaul and Layoffs Demanded by Minor Stakeholder

The letter also suggests significant staff reductions. Krupa points to Electronic Arts (EA), Take-Two Interactive, and Activision Blizzard, which achieve higher revenues and profitability with smaller workforces, noting Ubisoft's 17,000+ employees compared to EA's 11,000, Take-Two's 7,500, and Activision Blizzard's 9,500.

Krupa urges Ubisoft to implement substantial cost-cutting measures and staff optimization to improve operational efficiency. He also suggests selling underperforming studios to streamline operations, citing the large number of studios (over 30) as inefficient. While acknowledging previous layoffs (approximately 10% of the workforce), he insists these measures are insufficient, stating that announced cost-cutting targets of €150 million by 2024 and €200 million by 2025 are not aggressive enough to ensure competitiveness.

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