Ubisoft Leamington Officially Closes as Layoffs Accelerate and Tencent Restructuring Looms

After months of internal emails and corporate reshuffling, Ubisoft Leamington has now publicly confirmed its permanent closure. The announcement came not through a high-profile press release or coordinated corporate messaging—but instead via a modest two-part post on the studio’s unverified X account, symbolizing how far Ubisoft’s reach has fallen.

– we’ll still be part of UK games development, you can keep up with our UK team and future developments by following @UbiReflections.

If you’re local to Leamington, you’ll still see our remaining team in and around Leamington, and at local events.

Thank you for your support. pic.twitter.com/NMReoAQEgb

— Ubisoft Leamington (@UbiLeam) April 2, 2025

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“Ubisoft Leamington has officially closed its doors,” the studio wrote. “We’re incredibly proud of our talented team whose creativity and dedication have shaped the games we’ve created, impacting millions of players worldwide along the way. While this marks the end of a chapter we’ll still be part of UK games development. You can keep up with our UK team and future developments by following @UbiReflections.”

It’s a soft and humble ending for a studio that contributed to major Ubisoft projects like Star Wars Outlaws, Far Cry 5, and Skull and Bones. But the writing has been on the wall since January, when Ubisoft first revealed its sweeping plans to restructure across multiple European offices. Now, the closure is complete—and it won’t be the last.

Ubisoft’s January Layoff Announcement Was Just the Beginning

Back in January, Ubisoft announced the elimination of 185 positions across its studios in Leamington, Düsseldorf, Stockholm, and Reflections in Newcastle. Ubisoft Leamington was singled out for full closure, while other offices were scaled down.

A screenshot from Star Wars Outlaws (2024), Ubisoft

The move was described at the time as part of a cost-cutting strategy to “prioritize projects and ensure long-term stability.” However, internal communication obtained by YouTubers SmashJT and Endymion revealed just how deep the cuts were running. A leaked email from Ubisoft executives explained the reasoning behind the layoffs, expressing regret while also acknowledging the need to “refine studio strategy” and create an environment for future projects to survive.

As we noted then, Ubisoft’s situation wasn’t just about trimming excess. It was a company trying to downsize fast enough to stay afloat.

Shadows Has Fallen Short

Fast forward to April, and Assassin’s Creed: Shadows—which Ubisoft had pinned many of its hopes on—is already underperforming. Despite heavy marketing and a delay to polish the release, early reviews have been mixed and player engagement is lower than expected. According to third-party data, concurrent player counts have failed to crack previous franchise highs, and sales are soft in major markets.

A screenshot from Assassin’s Creed Shadows (2024), Ubisoft

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Ubisoft continues to claim that Assassin’s Creed: Shadows has “over 2 million players worldwide,” which on the surface seems great. But when you look at the language they’re using, things start to get hairy. They’re touting 2 million “players” and not 2 million units sold, leading many to believe Ubisoft is lumping in its subscription members into that number to inflate the game’s perceived success to investors. 

This is particularly bad news for a publisher already bleeding out. Ubisoft has now lost over 85% of its market cap since 2021, dropping from $12.17 billion to just $1.78 billion at the start of this year. Its cash reserves are dwindling, its debt is growing, and its leadership has yet to articulate a clear, viable strategy to reverse the trend.

Tencent’s New Ubisoft Subsidiary Reshapes the Company—and Sparks Fear Internally

The restructuring at Ubisoft is no longer hypothetical. It’s already underway—and it’s coming with a new corporate framework built alongside Chinese tech giant Tencent.

Earlier this year, Ubisoft officially announced the formation of a new subsidiary, created in partnership with Tencent and managed in part by the Guillemot family. The goal is clear: consolidate Ubisoft’s most profitable assets under a leaner, more efficient entity while the legacy company sheds weight through closures, layoffs, and project cancellations.

Yves Guillemot via Ubisoft North America YouTube

Core franchises like Assassin’s Creed, Rainbow Six, and select development teams have been folded into this new entity. The rest—studios without current or upcoming hits, or those seen as support branches—are terrified of being cut loose. Ubisoft Leamington was one of the first casualties. More are expected.

Internally, the atmosphere is tense. Multiple employees have told sources that the remaining teams are “bracing for the next wave” of cuts. With Assassin’s Creed: Shadows underperforming and Skull and Bones failing to meet even conservative expectations, Ubisoft’s roadmap looks fragile at best. Staff at non-priority studios are reportedly in the dark, fearing sudden reorganizations or pink slips with little notice.

A screenshot from Assassin’s Creed Brotherhood (2011), Ubisoft Montreal

This isn’t standard belt-tightening. It appears to be a deliberate dismantling. Tencent’s involvement has shifted Ubisoft’s structure away from sprawling, risk-heavy experimentation and toward tightly controlled, franchise-first production. That might mean short-term survival. But for thousands of workers, it may also mean the end of their time with the company. Ubisoft Leamington will likely not be the last closure. 

How do you feel about Ubisoft Leamington closing? Sound off in the comments and let us know!

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