Following a string of underperforming releases and setbacks, Ubisoft faces pressure from an investor to restructure its management and workforce.

Ubisoft Investor Demands Company Restructuring

Aj Investment Claims Last Year's Layoffs Insufficient

Minority investor Aj Investment has publicly urged Ubisoft's board, including CEO Yves Guillemot and Tencent, to take the company private and install new leadership. In an open letter, the investors expressed deep dissatisfaction with the company's performance and strategic direction.

The letter cites the delayed release of key titles like Rainbow Six Siege and The Division until late March 2025, alongside lowered Q2 2024 revenue projections and overall poor performance, as major concerns. Aj Investment explicitly proposed replacing Guillemot, advocating for a new CEO to optimize costs and studio structure for enhanced agility and competitiveness.

This call for change follows a significant drop in Ubisoft's share price; the Wall Street Journal reports a decline of over 50% in the past year. Ubisoft has yet to officially respond to the letter.

Aj Investment contends that Ubisoft's low valuation stems from mismanagement and that existing shareholders are being exploited by the Guillemot family and Tencent. The investor criticizes the company's focus on short-term gains rather than a long-term strategy prioritizing gamer experience.

Aj Investment's Juraj Krupa further criticized the cancellation of The Division Heartland and the underwhelming reception of Skull and Bones and Prince of Persia: The Lost Crown. He also highlighted the underperformance of several established franchises, including Rayman, Splinter Cell, For Honor, and Watch Dogs. While Star Wars Outlaws was anticipated to boost performance, its reportedly subpar sales contributed to the recent share price drop, reaching its lowest point since 2015.

The letter also proposes significant staff reductions, pointing to the higher revenue and profitability of competitors like Electronic Arts, Take-Two Interactive, and Activision Blizzard, despite employing fewer staff. Ubisoft's 17,000+ employees are contrasted with EA's 11,000, Take-Two's 7,500, and Activision Blizzard's 9,500.

Krupa argues that Ubisoft needs aggressive cost-cutting and staff optimization to improve operational efficiency. He suggests selling studios not crucial to the development of core IPs, noting the company's 30+ studios are excessive for its current profitability. While acknowledging previous layoffs (approximately 10% of the workforce), Krupa insists these measures are insufficient, even considering Ubisoft's announced plans to cut fixed costs.