Ubisoft Accelerates Cost-Cutting Measures Following Studio Closures, Aiming for Ambitious Goals in FY26

Ubisoft’s financial overview for the nine-month period concluding December 31, 2024 has been released, with the French game developer and publisher highlighting its forthcoming Assassin’s Creed installment along with the acknowledgment of an ongoing cost-cutting initiative that has already led to several studio closures and reorganizations, with additional changes apparently still underway.

These cost reductions align with strategies and methodologies outlined earlier into 2025 aimed at “restructuring the company” to enhance Ubisoft’s operational performance, value creation, and player engagement. According to today’s press release detailing the Q3 findings, these initiatives are progressing “ahead of schedule,” largely due to Ubisoft’s closure of its San Francisco and Osaka teams, along with “targeted reorganizations” across its subsidiaries in Leamington, Stockholm, and Newcastle.

These layoffs and closures, along with various actions taken by the company, have placed the firm firmly on track to achieve the €200 million fixed cost reduction target set forth, prompting CEO Yves Guillemot to now assert that the company intends to significantly exceed its original goal and further lower expenses into the 2025-2026 fiscal year starting this April.

“Thanks to disciplined implementation, we have announced further targeted restructurings, making tough but essential decisions, and now expect to surpass our cost reduction target by the end of FY25, ahead of schedule,” Guillemot stated. “We aim to continue our efforts in FY26, exceeding the initial target by a considerable margin.”

Ubisoft prepares for Assassin’s Creed and an uncertain future

From a financial standpoint, Ubisoft’s revenue for the third quarter of the 2024-2025 fiscal year aligns with its previously adjusted forecasts. Quarterly revenue reached €301.8 million, representing a 52% decline year-over-year and slightly exceeding that revised target by €1.8 million. Meanwhile, total revenue for the complete nine-month period was €944 million, down nearly 35% year-over-year.

Looking ahead to the final quarter of the 2024-2025 fiscal year, Ubisoft anticipates that these concluding months will elevate the full year’s total revenue to around €1.9 billion. Guillemot noted that the developer is “fully committed” to Assassin’s Creed: Shadows prior to its March 20 launch. This action-stealth game has been postponed twice and stands as Ubisoft’s next major release following the 2024 launch of Star Wars Outlaws.

“I wish to commend the incredible talent and dedication of the entire Assassin’s Creed team, who are working relentlessly to ensure that Shadows lives up to the franchise’s most ambitious installment yet,” he remarked.

In January, Ubisoft informed investors that it would take “decisive actions” to transform the company and enhance its focus on “delivering top-tier player experiences, improving operational efficiency, and maximizing value creation.” The cost-cutting initiatives are part of this recognized efficiency, as is enhancing the quality of releases like Outlaws through post-launch updates.

Guillemot also addressed the evaluation process of its “strategic options” mentioned in January. This process, which followed reports of the Guillemot family exploring a potential buyout with Tencent, remains “ongoing.”

“Ultimately, the goal is to unlock the maximum value from our assets for our stakeholders and to create the best conditions to develop outstanding games in an ever-evolving market,” he clarified. “We believe there are multiple potential pathways to achieve this goal.”

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