Ubisoft is Closing Down One of Its Studios

gamerant.com:

Ubisoft is closing down several European locations, including its Ubisoft Benelux office, citing «external factors» impacting the company's physical game sales. Layoffs have been occurring across the video game industry in recent months, with the current financial year coming to a close. Ubisoft hasn't been absent from this wave of cuts, and perhaps stands out as one of the most severely impacted companies. The newly confirmed closures are just the latest step Ubisoft has made as part of a series of cuts.

In mid-January, Ubisoft confirmed cost-cutting efforts as it moved toward a targeted restructuring. The most public of these cuts was the confirmation of three canceled game projects, on top of four cancelations from mid-2022. The oft-delayed Skull & Bones had also been pushed back once more. Ubisoft said at the time that developers on those projects would be shifted to other titles as applicable, but layoffs were later confirmed to be ongoing.

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The latest effort in Ubisoft's plan to cut operating costs has resulted in the company shutting down multiple European locations. An internal email that was leaked publicly confirmed that Ubisoft management decided to «close a number of subsidiaries in Europe.» These shutdowns include the Ubisoft Benelux office and the layoff of «most» of the location's employees starting April 1.

As explanation for the closure of Ubisoft Benelux and other European Ubisoft locations, the company referenced «several challenges due to external factors.» Listed factors include falling physical game sales, digitizing communication channels, a shift toward free-to-play games over major retail releases, and both mobile and seasonal projects