Ubisoft just confirmed what many in the gaming industry already suspected. The publisher behind Assassin’s Creed and Far Cry laid off 1,500 employees over the past year, reducing its workforce from 18,597 to 17,097 people between September 2024 and September 2025. That’s not where the cuts end either. The company’s semi-annual financial report makes it clear that more restructuring is on the way as Ubisoft tries to slash €100 million in expenses for the next fiscal year.
The Numbers Tell a Brutal Story
The reduction didn’t happen all at once. Ubisoft’s headcount dropped by 700 employees between March 2025 and September 2025 alone. The company is calling this process “targeted restructuring and adherence to hiring discipline,” which is corporate speak for cutting jobs and not replacing people who leave. Despite operating with significantly fewer staff, Ubisoft is still bleeding money, though the rate has slowed from €246.5 million in net losses to €161.4 million.
The company is also drowning in debt. As of September 30, 2025, Ubisoft carried €1.15 billion in net debt. The only lifeline on the horizon is a deal with Tencent to establish Vantage Studios, which should help settle some of that debt once it closes. But even with Chinese tech giant backing, the fundamental problems at Ubisoft remain unresolved.
A Year of Constant Job Cuts
The 1,500 figure represents the total reduction over 12 months, but that number disguises multiple waves of layoffs throughout the period. The company has been systematically cutting staff across different divisions and regions. Earlier waves targeted business administration, human resources, and IT departments. Later rounds hit development studios directly.
Some of the most painful cuts came from game cancellations. The shutdown of XDefiant, Ubisoft’s failed free-to-play shooter, resulted in the closure of studios in San Francisco and Osaka. That alone cost 277 jobs. The company also downsized its Newcastle-based Ubisoft Reflections studio and shut down its Leamington Spa location entirely. Development hubs in Dusseldorf and Stockholm saw reductions as well.
What makes these layoffs particularly rough is that many affected employees worked on franchises that built Ubisoft’s reputation. The Montreal studio, responsible for Assassin’s Creed, saw cuts. Red Storm, the team behind Tom Clancy games, faced restructuring. These weren’t struggling peripheral studios but core pillars of Ubisoft’s development capacity.
AI Gets the Blame and the Budget
Ubisoft’s financial reports mention that AI will play a role in reducing costs going forward. The company is betting that artificial intelligence can help fill the gaps left by human workers. This has sparked fierce debate in the gaming community about whether AI can actually replace the creative talent that makes games worth playing.
The reality is more nuanced than simple replacement. Ubisoft likely plans to use AI for tasks like basic asset creation, localization, and quality assurance testing. But the announcement still lands poorly when it comes right after eliminating 1,500 jobs. It sends a clear message that the company sees technology as a cheaper alternative to experienced developers, artists, and designers.
What Led to This Crisis
Ubisoft’s problems didn’t appear overnight. The company has been struggling with multiple self-inflicted wounds for years. Several high-profile games underperformed or outright flopped. XDefiant failed to gain traction in a crowded free-to-play shooter market. Skull and Bones launched years late and received lukewarm reception. Even established franchises like Assassin’s Creed have seen fan backlash over repetitive formulas and aggressive monetization.
Beyond game performance, Ubisoft faced serious workplace culture issues. Reports of misconduct and toxic management damaged the company’s reputation and led to executive departures. These scandals didn’t just hurt morale – they cost money in settlements, investigations, and the loss of talent who didn’t want to work for a company with those problems.
The broader gaming market hasn’t helped either. Development costs continue rising while players have become more selective about where they spend money and time. Live service games require constant updates and support, draining resources. Single-player titles need blockbuster production values to compete. Ubisoft tried to be everything to everyone and ended up stretched too thin.
What Comes Next
The planned €100 million in cost reductions for fiscal year 2026-2027 signals more pain ahead. That kind of savings doesn’t come from cutting office snacks and turning down the air conditioning. It means more jobs will disappear, more studios will downsize, and more projects will get canceled or scaled back.
Ubisoft is clearly trying to become a leaner operation focused on its most profitable franchises. That probably means more Assassin’s Creed, Far Cry, and Rainbow Six content while smaller experimental projects get axed. The problem with this strategy is that it makes the company more vulnerable to individual game failures. If the next Assassin’s Creed bombs, there’s less cushion to absorb the impact.
Frequently Asked Questions
Why is Ubisoft laying off so many employees?
The company is facing significant financial pressure with over €1 billion in debt and ongoing losses. Multiple underperforming games, rising development costs, and market changes have forced Ubisoft to cut expenses wherever possible, with employee headcount being a major target.
Which Ubisoft studios were affected by layoffs?
Studios in San Francisco, Osaka, Newcastle, Leamington Spa, Dusseldorf, Stockholm, and Montreal have all experienced job cuts. Some locations like Leamington Spa and the XDefiant-focused studios were shut down entirely.
Will these layoffs affect upcoming Ubisoft games?
Almost certainly. Losing 1,500 employees across development, support, and publishing roles will impact production capacity. Games may face delays, reduced scope, or cancellation depending on which teams were affected.
Is Ubisoft going bankrupt?
Not imminently, but the company is in serious financial trouble with €1.15 billion in net debt. The Tencent partnership should provide some relief, but Ubisoft needs its upcoming releases to perform well or the situation could deteriorate further.
How does Ubisoft plan to use AI to replace workers?
Specific details aren’t public, but the company has indicated AI will help reduce costs going forward. This likely includes using AI for asset generation, testing, localization, and other tasks that traditionally required human labor.
Are more layoffs coming at Ubisoft?
Yes. The company’s stated goal of cutting €100 million in expenses for the 2026-2027 fiscal year strongly suggests additional job reductions are planned as part of ongoing restructuring efforts.
What happened to XDefiant and why did it cost so many jobs?
XDefiant failed to attract enough players to justify its ongoing development costs. Ubisoft shut down the game and closed the San Francisco and Osaka studios working on it, resulting in approximately 277 job losses.
Conclusion
Ubisoft’s situation reflects broader problems in the gaming industry but with company-specific issues making things worse. The combination of expensive game development, changing player preferences, aggressive competition, and internal management failures created a perfect storm. While AI and restructuring might help Ubisoft survive short-term, the real question is whether the company can rebuild trust with both players and talented developers. Games are made by people, not spreadsheets or algorithms. Cutting 1,500 jobs while promising AI will pick up the slack might satisfy investors temporarily, but it’s hard to see how that creates the creative environment needed to produce the innovative games that could actually turn Ubisoft around. For the 1,500 people who lost their jobs and the unknown number facing future cuts, the corporate jargon about efficiency and optimization represents real lives disrupted in an already unstable industry.