Ubisoft’s shares tumbled by approximately 34 per cent after the publisher announced a sweeping restructuring that includes studio closures, the cancellation of six games, and a warning of heavy losses as it attempts to stabilise its business after years of delays and underperformance.
Ubisoft shares plunged by around 34 per cent after the studio confirmed a sweeping internal restructure that includes studio closures, significant cost-cutting, and the cancellation of six projects.
The market reaction followed Ubisoft’s warning that it now expects to post an operating loss of roughly €1 billion for the financial year ending 2026, driven in part by a €650 million write-down linked to the overhaul.
The company said the changes were necessary after several years of declining performance following the Covid pandemic, marked by repeated delays to major releases and weaker-than-expected sales.
In a statement, Ubisoft founder and CEO Yves Guillemot said the current market environment required the group to “step-change how it is organised and operates”.
He added that the reset would hurt results in the short term but was intended to restore sustainable growth and cash generation over time.
As part of the plan, Ubisoft confirmed the closure of studios in Halifax, Canada, and Stockholm, alongside restructurings across sites in Abu Dhabi, Helsinki and Malmö.
The company expects the measures to reduce fixed costs by around €500 million, bringing them down to €1.25 billion by March 2028.
The restructure has also had a direct impact on Ubisoft’s development pipeline.
Among the cancelled projects is the long-troubled Prince of Persia: The Sands of Time Remake, which the publisher said would have required more time and investment than it could “responsibly commit” after years in development.
Five other unannounced games were also scrapped, while several high-profile titles – including a remake of Assassin’s Creed IV: Black Flag – have been delayed.
Ubisoft now expects net bookings of around €1.5 billion for FY2026, well below previous guidance.
Ubisoft shares drop by 34 per cent after studio cancels six games and confirms a major restructure
