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

Ubisoft Faces Investor Pressure for Restructuring

Aj Investment Calls for Major Overhaul

Aj Investment, a significant 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, citing concerns over delayed game releases (like Rainbow Six Siege and The Division, pushed to late March 2025), lowered Q2 2024 revenue projections, and overall poor performance. The letter specifically proposed replacing Guillemot as CEO, advocating for a new leader to optimize costs and studio structure for enhanced agility and competitiveness.

This pressure has impacted Ubisoft's stock price, which reportedly plummeted over 50% in the past year, according to the Wall Street Journal. Ubisoft has yet to publicly respond to the letter.

Aj Investment contends that Ubisoft's low valuation stems from mismanagement and the perceived advantage taken by the Guillemot family and Tencent. They criticize the company's focus on short-term gains rather than a long-term strategy focused on delivering exceptional gaming experiences.

Aj Investment's Juraj Krupa further criticized the cancellation of The Division Heartland, the underwhelming performance of Skull and Bones and Prince of Persia: The Lost Crown, and the perceived rushed release of Star Wars Outlaws, despite high anticipation. He also highlighted the underutilization of popular franchises like Rayman, Splinter Cell, For Honor, and Watch Dogs.

The letter also proposes significant staff reductions, citing that competitors like EA, Take-Two Interactive, and Activision Blizzard achieve higher revenue and profitability with smaller workforces. Ubisoft's 17,000+ employees are contrasted with EA's 11,000, Take-Two's 7,500, and Activision Blizzard's 9,500. Krupa suggests streamlining operations and potentially selling underperforming studios to improve efficiency. While acknowledging previous layoffs (approximately 10% of the workforce), he argues that further, more aggressive cost-cutting measures are necessary to maintain competitiveness. The planned cost reductions of €150 million by 2024 and €200 million by 2025 are deemed insufficient.