Ubisoft recently announced a major internal reorganization, forming five new creative divisions — one of which is supported by Chinese giant Tencent. These divisions will each focus on specific game series and areas of expertise. However, beyond the excitement of this announcement, the restructuring process is far from complete. The company is now entering “Phase 3,” which aims to reduce annual costs by an additional 200 million euros by the end of March 2028.
Achieving this target will likely result in the loss of thousands of jobs. Currently, Ubisoft is still in “Phase 2,” which already involved cutting €300 million in annual expenses — and the impact of those cuts is already evident.
A Drastic Situation for Ubisoft Employees
According to Ubisoft’s official reports, between September 2022 and September 2025, the company’s workforce dropped from 20,729 to 17,097 employees — a total loss of 3,632 jobs. This period has been particularly tough, marked by the closure of several studios in London, Osaka, San Francisco, Leamington, Halifax, and Stockholm.
Industry insider Tom Henderson revealed that additional layoffs are expected to be announced on February 12, 2026. And that won’t be the end — more job cuts are expected as Ubisoft continues its cost-reduction plan. Henderson estimates that if Phase 3 represents about two-thirds of Phase 2’s scale, it could result in another 2,400 layoffs by March 2028.
Adding to the tension, Ubisoft has also ordered a full return to the office for employees who were previously working remotely. This move could trigger even more resignations, as some workers may refuse to comply.
All these actions raise serious questions. Will these cost-cutting measures truly help Ubisoft recover from its ongoing struggles? Or will they further damage employee morale and productivity, deepening the company’s problems?
Another major concern is how Ubisoft will manage its many game franchises after losing so many developers. With reduced staff, maintaining quality and meeting deadlines for new releases may become even more challenging.
