Ubisoft in Crisis: Paris Job Cuts Signal Deep Restructuring

Restructuring at Ubisoft’s Heart

Ubisoft, the French video game powerhouse behind Assassin’s Creed and Far Cry, has confirmed plans to cut around 200 positions at its Paris headquarters. This marks one of the most significant workforce reductions in France’s tech scene to date — and a striking move for a company long considered one of Europe’s most successful gaming exporters.

The cuts are part of a €200 million restructuring plan launched in January 2026, as Ubisoft struggles to manage ongoing project cancellations, staff overcapacity, and plummeting stock performance.

According to Ubisoft’s statement, these reductions will occur through a “Rupture Conventionnelle Collective (RCC)” — a voluntary redundancy program negotiated with French unions and subject to government approval.

“At this stage, this remains a proposal,” said a company spokesperson. “No decision will be final until validated by French authorities.”

A Rare Move in France’s Protected Labour Market

France’s strict labor laws make mass layoffs rare and often controversial. Ubisoft’s move to launch an RCC is significant — it allows the company to reduce headcount without enforcing compulsory redundancies, aiming to soften the social impact.

While Ubisoft has already axed around 3,000 jobs globally over the last two years — closing studios in Stockholm and Halifax — this is the first major wave to reach French soil, where employment protections are strongest.

Union Backlash and Worker Frustration

Unions reacted swiftly. French gaming union Solidaires Informatique called for a half-day strike on January 22, condemning the “disastrous” management decisions and accusing Ubisoft of poor leadership.

Key points from the backlash include:

Opposition to full office returns: Ubisoft recently mandated employees return to five-day in-office schedules, ending hybrid work policies established during the pandemic.
High-level pay criticism: Unions claim management continues to “create high-salary executive positions” despite widespread layoffs.
Loss of trust: Many employees relocated from Paris during the pandemic, making the return-to-office rule both disruptive and unpopular.

Vincent Cambedouzou from the STJV Video Game Workers’ Union described the move as “completely unacceptable” and symptomatic of ongoing mismanagement within the company.

Stock Market Punishment

Investors didn’t take the news lightly. In just 24 hours following Ubisoft’s restructuring announcement, shares plunged nearly 40%, falling from €6.63 to €3.99.

Stock value has now dropped 95% since early 2021, when shares were trading above €80.
Analysts cite a combination of “creative stagnation” and “executive indecision” as long-term contributors.

This steep decline reinforces growing doubts about Ubisoft’s ability to compete against global rivals like Electronic Arts and Activision Blizzard — especially in a market now dominated by consolidation and big-budget franchises.

CEO Yves Guillemot’s ‘Major Reset’

Ubisoft CEO Yves Guillemot described the cuts as “a necessary reset” aimed at making the company more focused, efficient, and sustainable. The publisher plans to streamline its structure into five independent creative divisions, each responsible for distinct gaming genres.

The shake-up follows several setbacks:

The cancellation of six major titles, including the much-delayed Prince of Persia: The Sands of Time remake.
Delays to seven other games, straining investor confidence.
Studio closures and escalating development costs amid shifting market trends.

Ubisoft now forecasts a €1 billion operating loss for its 2025–26 fiscal year, lowering its revenue guidance to €1.5 billion.

“While these decisions are difficult,” Guillemot said, “they are essential to build a more sustainable future for Ubisoft.”

The Road Ahead

Ubisoft’s restructuring is part of a broader reckoning across the gaming industry. After years of pandemic-era expansion, many studios face painful contractions as development costs soar and player expectations rise.

For Ubisoft, success in the coming years will depend on whether this overhaul truly refocuses its creative energy — or merely delays deeper structural challenges.