Ubisoft Entertainment suffered its worst trading day ever after announcing a sweeping reorganisation, studio closures, and the cancellation of six games. Shares of the “Assassin’s Creed” publisher fell as much as 33% in delayed trading, marking the steepest one-day drop since its 1996 IPO. The stock now trades around €4.6, giving the company a market value of roughly €616 million ($720 million).
The selloff comes after years of challenges, including delayed releases, rising costs, and weakening bookings since the pandemic.
Ubisoft’s major restructuring and studio closures
Ubisoft revealed plans to split operations into five creative divisions organised by game genre. Studios in Halifax, Canada, and Stockholm will close, while operations in Abu Dhabi, Helsinki, and Malmö will undergo restructuring.
The company also cancelled development on six games, including a highly anticipated Prince of Persia remake, and delayed an unannounced title by a year. CEO Yves Guillemot said the changes are necessary to reset the company for sustainable growth, though the short-term financial impact will be significant.
The restructuring triggered a €650 million write-down, and Ubisoft now expects an operating loss of around €1 billion ($1.17 billion) for the fiscal year ending 2026.
Forecast cuts and cost-cutting measures
Ubisoft sharply lowered its outlook, now expecting net bookings of €1.5 billion ($1.75 billion) for fiscal 2026, down €330 million from prior guidance. Earlier forecasts for 2026 and 2027 have been withdrawn.
The company plans to generate €500 million ($580 million) in cost savings and reduce fixed costs to €1.25 billion ($1.46 billion) by March 2028, down from €1.75 billion ($2.35 billion) in 2023. Over the next two years, it will also trim €200 million in additional costs. Adjusted losses before interest and tax are expected to reach €1 billion this fiscal year.
Market reaction and investor impact
Analysts reacted sharply to Ubisoft’s announcement. Bernstein called it a “dire profit warning in a long string of unmitigated disasters.”
The plunge was a major win for short sellers. Citadel held a 0.89% short position, profiting roughly €240 million from the drop, while Marchant MC held 0.56% in shorts.
Ubisoft shares have now lost nearly half their value over the past year and remain far below their 2018 peak market capitalisation of €11 billion. The company faces a tough path as it attempts to reset its business and restore investor confidence.
