Following a string of underperforming releases and setbacks, Ubisoft faces pressure from a minority investor to restructure its management and workforce.
Minority Investor Demands Ubisoft Restructuring
Aj Investment Claims Last Year's Downsizing Insufficient
Aj Investment, a minority shareholder, 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, they 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 (pushed to late March 2025), a lowered Q2 2024 revenue forecast, and overall poor performance as major concerns. Aj Investment specifically proposed replacing Guillemot, stating their desire for "a new CEO who will optimize costs and studio structure for a more agile and competitive company."
This pressure has impacted Ubisoft's share price, which, according to the Wall Street Journal, has plummeted over 50% in the past year. Ubisoft has yet to publicly respond to the letter.
Aj Investment contends that Ubisoft's low valuation is due to mismanagement and that existing shareholders are being exploited by the Guillemot family and Tencent. They criticize the company's focus on short-term gains rather than long-term strategic planning and delivering exceptional gaming experiences.
Aj Investment's Juraj Krupa further criticized the cancellation of The Division Heartland, the underwhelming reception of Skull and Bones and Prince of Persia: The Lost Crown, and the perceived stagnation of several popular franchises. He noted the strong performance of Rainbow Six Siege but highlighted the underutilization of franchises like Rayman, Splinter Cell, For Honor, and Watch Dogs. Even the highly anticipated Star Wars Outlaws, while expected to boost sales, received mixed reviews suggesting a rushed release.
Ubisoft's reliance on Star Wars Outlaws to reverse its fortunes has been unsuccessful, contributing to a share price decline that has reached its lowest point since 2015—a drop exceeding 30% year-to-date.
The letter also proposes significant staff reductions. Krupa points to the higher revenue and profitability of competitors like Electronic Arts, Take-Two Interactive, and Activision Blizzard, which employ considerably fewer staff despite generating greater success. Ubisoft's workforce of over 17,000 dwarfs EA's 11,000, Take-Two's 7,500, and Activision Blizzard's 9,500.
Krupa advocates for aggressive cost-cutting and staff optimization to improve operational efficiency. He suggests selling underperforming studios to streamline the company's 30+ studio structure, deeming it excessively large for current profitability. While acknowledging previous layoffs (approximately 10% of the workforce), Krupa insists that further action is necessary to remain competitive, stating that the planned cost reductions are insufficient.
