Ubisoft: More Layoffs, Goodbye to Remote Work, More Generative AI!

The French publisher’s changes are significant, but it’s worth considering what we can expect from Ubisoft.

 

Ubisoft canceled six projects, including the long-awaited Prince of Persia: Sands of Time remake, and postponed seven more. The company was also reorganized into five separate creative houses. What can we expect? Further staff reductions, a return to the office, and increased investment in cutting-edge technology, particularly generative AI for gamers. Ubisoft’s fundamental structure is changing. The company is shifting to a decentralized model in which five creative houses will report to Ubisoft headquarters. Each house will have financial responsibility and full creative ownership of its brands and intellectual property. Each creative house will be supported in production by a creative network of studios, all of which are supported by Core Services.

The layoffs (including the closure of the Leamington studio, which was not mentioned here but is part of Ubisoft’s previously announced restructuring plan) are not yet complete. The third and final phase of the restructuring will be announced on February 12. This phase is expected to conclude in March, so further layoffs are anticipated after February. The company hopes to save €200 million through these layoffs. In addition to downsizing, another important element of the new structure is returning to the office.

Remote work will no longer be an option across the entire company. Instead, employees will be given a limited number of days per year to work from home, essentially equivalent to vacation or sick leave. If anything, these provisions will accelerate turnover within the company, as many employees will not be able to relocate if they suddenly have to spend five days in the office each week. These changes are better seen as mild layoffs than as changes aimed at improving employee cooperation.

“As part of the effort to streamline operations and adapt to evolving market conditions, the group has taken decisive action to adjust its studio footprint. This includes closing the Halifax mobile studio earlier this month, shuttering the Stockholm studio, and restructuring at the Abu Dhabi, RedLynx, and Massive studios. To support the effective implementation of this new model, the group intends to require all teams to work on site five days per week, with an annual allowance of work-from-home days. This evolution is intended to strengthen collaboration and constant knowledge sharing across teams. In-person collaboration is key to collective efficiency, creativity, and success in an increasingly selective AAA market,” the press release says.

“We really want to strengthen onsite collaboration and the collective dynamic across teams. We know that in-person collaboration and interactions are key enablers of efficiency, creativity, and collective success in this persistently selective market. It’s one enabler among others, but it’s one that we really believe in. Our one and only objective is to enhance collective efficiency and drive dynamics, creativity, and a sense of belonging. We will, of course, discuss the modus operandi and the flexibility linked to the evolution of our model with the different countries in due time. However, the objective is linked to the quality of our games and creativity. It’s one way for the Creative Houses to reconnect with success and team engagement,” said Ubisoft’s senior vice president of studio operations, Marie Sophie de Waubert, in an interview with GamesIndustry.

The new Core Services division is the backbone of Ubisoft’s ecosystem. The division’s teams will ensure scalable technology, production capacity, and operational excellence across the entire group. They are responsible for production services, including quality assurance, localization, game testing, and game analysis. The division also oversees the company’s technological infrastructure, including game engines, online services, IT infrastructure, and generative artificial intelligence.

These changes, including the new structure, will take effect in April.

Source: WCCFTech, Gamesindustry

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