A leaked Ubisoft internal email shows company higher ups attempting to explain recent studio closures and layoffs to the remaining employees.
Ubisoft, once a revered giant in the gaming industry, has found itself grappling with an unprecedented wave of studio closures and widespread layoffs. The latest blow came with the shutdown of Ubisoft Leamington and the termination of 185 employees across various European offices.
A screenshot from Assassin’s Creed Shadows (2024), Ubisoft
READ: EXCLUSIVE: ‘Assassin’s Creed Shadows’ Delay Was to Scale Back Yasuke After Historical Backlash
Central to understanding the gravity of these changes is an internal email circulated among Ubisoft employees, shedding light on the company’s dire circumstances and the rationale behind these drastic measures. Prominent gaming commentators SmashJT and Endymion have provided this email and the exclusive insights found within.
A Snapshot of Decline
Ubisoft’s fall from grace has been nothing short of dramatic. From a market capitalization of $12.17 billion in January 2021, the company’s value plummeted to a mere $1.78 billion by January 2025, marking an approximate 85% decline. This staggering reduction underscores a loss of investor confidence and highlights severe financial instability.
The root causes of this decline are multifaceted, encompassing failed game launches, strategic missteps, mounting debt, and organizational inefficiencies.
The Internal Email: A Glimpse into Ubisoft’s Strategy
At the heart of Ubisoft’s restructuring efforts lies an internal email addressed to all employees, outlining the necessity of targeted restructurings across global studios. The email begins by acknowledging the significant challenges faced over the past year and commends the resilience and commitment of the Ubisoft team. However, it swiftly moves to the harsh reality that difficult decisions must be made to secure the company’s long-term stability and future success.
A screenshot from Assassin’s Creed Shadows (2024), Ubisoft
The email details the restructuring of the Stockholm studio, affecting approximately 20 roles. It emphasizes the importance of creating the right environment for future projects to thrive, despite the painful impact on colleagues and friends. Ubisoft assures affected employees of tailored severance packages, career transition resources, and well-being support to navigate this tumultuous period.
Expanding beyond Stockholm, the email announces similar measures in Ubisoft Düsseldorf and the closure of Ubisoft Leamington in the UK. A total of 185 employees across these locations are set to lose their jobs. Ubisoft’s leadership expressed deep regret over these decisions, thanking employees for their contributions and pledging support throughout the transition.
Key art for XDefiant (2024), Ubisoft
Here is the full transcript of the email:
Dear Team,
As you all know – the past year has been marked by significant challenges for Ubisoft and our industry – challenges that have necessitated changes in the form of targeted restructurings across our global organization and production studios.
Together, we’ve navigated these uncertain times with resilience and an unwavering commitment to deliver exceptional games and drive innovation. However, to secure our long-term stability and future success, we must continue to make some very difficult decisions.
Restructuring the Stockholm Studio
This morning, we announced a restructuring of our Stockholm studio. This decision was not made lightly. However, it is a necessary step to refine the Studio strategy and secure long-term stability.
The Stockholm team plays a vital role in our future, and for their vision to succeed, we must create the right environment for their projects to thrive.
We estimate that approximately 20 roles in the Stockholm studio may be impacted. We know that this decision impacts more than just the studio and its projects; it impacts people—our colleagues, teammates, and friends.
We deeply understand how difficult this is, and supporting everyone through this transition is our utmost priority. We are committed to providing:
• Severance packages tailored to individual circumstances.
• Career transition resources through an external partner to help affected team members explore new opportunities.
• Well-being support to provide emotional and professional guidance during this time.
Updates from Zone 4 Today
In addition to the restructuring announced in Stockholm, similar efforts have also been shared today within Zone 4.
In Germany, Ubisoft Düsseldorf has announced that around 65 positions may be made redundant. Meanwhile, in the UK, we will see the closure of the Ubisoft Leamington site, and around 100 roles proposed to be made redundant across Ubisoft Leamington and Ubisoft Reflections.
A global update on this will be available through an article on Agora, which will be published around noon tomorrow.
Moving Forward
As we move forward after today’s news, I want to thank you all. Your resilience, creativity, and passion are what make our Zone extraordinary. As we work through this transition, let’s continue to support one another and stay focused on the path ahead. Together, I am confident we will emerge stronger, ready to deliver on the bold ambitions we have been building.
If you have any questions or concerns, please don’t hesitate to reach out to your manager, HR, or me directly.
A screenshot from Tom Clancy’s Splinter Cell Blacklist (2013), Ubisoft
This email encapsulates the difficult choices Ubisoft has had to make in an attempt to stabilize its operations. However, as highlighted by SmashJT and Endymion, these measures appear more like desperate attempts to stem a sinking ship rather than a strategic overhaul aimed at revitalizing the company.
SmashJT and Endymion: Voices from the Frontline
Amid these public announcements, influential YouTubers SmashJT and Endymion have provided a more personal and unfiltered perspective on Ubisoft’s crisis.
In a detailed account, SmashJT criticized Ubisoft’s leadership and strategic direction, describing the company’s actions as a “desperate attempt” to salvage its once-thriving empire. He highlighted the broader challenges Ubisoft faces, attributing them to a series of failed game launches, internal controversies, and strategic missteps. According to SmashJT, the closure of Ubisoft Leamington and the subsequent layoffs are symptomatic of deeper, systemic issues within the company.
He references strategic misfires with games like Star Wars: Outlaws along with major management issues.
Smash JT via Smash JT YouTube
“Then we have Ubisoft’s intense focus on Diversity, Equity, and Inclusion (DEI) initiatives,” SmashJT said in his official article on this issue. “And those have alienated a large portion of their core fanbase. This insane cult-like cultural overreach has directly contributed to the erosion of Ubisoft’s market confidence, further complicating any kind of path to recovery.
The Future of Assassin’s Creed Shadows
The imminent release of Assassin’s Creed Shadows, delayed until March 20, serves as a critical juncture for Ubisoft.
A screenshot from Assassin’s Creed Shadows (2024), Ubisoft
READ: Call of Duty Developer Activision Blizzard Doubles Down on DEI as U.S. DOD Reverses Course
Reportedly costing the company an additional $20 million, the game’s performance is pivotal. That’s why, as That Park Place exclusively reported, sources have indicated that the company used much of that $20 million to restructure the game’s narrative and shift focus away from the controversial supposedly “historical” black samurai Yasuke as the main character.
Should Shadows fail to meet high expectations, it could trigger further layoffs and exacerbate Ubisoft’s financial instability, potentially sealing the company’s fate as it continues its downward spiral.
Ubisoft: A Company on the Brink
Ubisoft’s recent actions—shutting down studios, laying off hundreds of employees, and struggling with failed game releases—are emblematic of a company in deep crisis.
A screenshot of Star Wars Outlaws (2024), Ubisoft
The drastic decline in market capitalization, coupled with mounting debt and organizational inefficiencies, has left Ubisoft vulnerable to potential bankruptcy. With insiders revealing more about the company’s inner workings and the gaming community witnessing the unraveling of a once-mighty empire, the future of Ubisoft remains uncertain.
As 2025 unfolds, Ubisoft stands at a crossroads, facing the very real possibility of collapsing into obscurity unless it can implement swift and effective changes to stabilize its finances and regain the trust of investors and players alike.
What do you think about the Ubisoft email? Sound off in the comments and let us know! And keep it here at That Park Place for all the news that should be fun!
