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Ubisoft Lays Off 45 Workers in Attempt To Address So-Called 'Market Evolution'

Ubisoft Lays Off 45 Workers in Attempt To Address So-Called 'Market Evolution'

Ubisoft has conducted another round of layoffs, this time kicking out 45 employees in the latest wave of cuts that are parts of an effort to address the so-called "market evolution."

The company said that the layoffs were done to reorganize its Global Publishing central and Asia-Pacific structures as well as to enhance collective efficiency. Ubisoft's latest round of job cuts comes after other companies have also done the same, including Gearbox, Sega, Certain Infinity, and Maxis Games.

Ubisoft's Latest Round of Job Cuts

The gaming industry was hit with another round of job cuts after Ubisoft announced its latest wave of layoffs affecting 45 employees in an attempt to address "market evolution."
(Photo : BERTRAND GUAY, AFP, Getty Images / Screenshot taken from Getty Images)

In November 2023, Ubisoft was found to have laid off more than 1,000 employees and in January this year, Microsoft did the same to roughly 1,900 staff members from the Xbox division alone, as Sony laid off 900 people in February.

The situation is not only seen on the development side as Twitch and GameStop also conducted mass layoffs. More than 8,000 workers were laid off in 2024 as of early March based on report data, according to GameSpot.

When reached out about the layoffs, Ubisoft said that over the past few months, every team within the company has been exploring ways to streamline operations and enhance collective efficiency. This is part of the company's efforts to become better positioned for success in the long term.

Ubisoft said that the decision to lay off employees was not one that was taken lightly and added that it is providing comprehensive support for affected workers. The layoffs come as the gaming company released Prince of Persia: The Lost Crown and  so far this year.

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Despite the latter's low player numbers, it broke company records for playtime. On the other hand, shooter game XDefiant was delayed once again beyond March but at least Star Wars Outlaws and an Assassin's Creed game codenamed Red are still on track for this fiscal year.

The gaming industry experienced layoffs of nearly 10,000 people last year as the entire industry shifted in another direction. There are many companies that are looking towards live service games to make money to survive and Ubisoft is no different, said GameRant.

The Situation Within the Gaming Industry

It seems that layoffs are becoming even harder to avoid, even for companies that are extremely popular among players. Insomniac Games is among these and was forced to issue a statement after suffering layoffs. This came despite the success of Marvel's Spider-Man 2, causing many fans to be surprised.

The first signs of massive layoffs in the gaming industry happened in January 2023 when Wizards of the Coast, which is best known for Magic: The Gathering and Dungeons & Dragons, laid off roughly 300 workers. This was due to the cancelation of five games following unsuccessful projects from 2019 to 2022.

Despite the continued layoffs, the issue seemingly has not affected the overall quality of video games that have been released over the past year. Noteworthy titles include Baldur's Gate 3, The Legend of Zelda: Tears of the Kingdom, Alan Wake II, and many others that have surprised fans and players alike, according to Mezha Media.


Related Article: CD Projekt Made $120 Net Profit in 2023 Thanks to Success of Cyberpunk 2077, Interest in Witcher

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