Following a string of underperforming releases and setbacks, Ubisoft faces pressure from an investor to restructure its management and workforce.
Ubisoft Investor Demands Overhaul
Aj Investment Claims Last Year's Downsizing 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, they expressed deep dissatisfaction with the company's performance and strategic direction.
The letter cites the delayed release of key titles (Rainbow Six Siege and The Division, pushed to late March 2025), lowered Q2 2024 revenue projections, and overall poor performance as major concerns. Aj Investment specifically proposed replacing Guillemot, advocating for a new CEO to optimize costs and studio structure for improved agility and competitiveness.
This pressure has impacted Ubisoft's share price, which, according to the Wall Street Journal, has fallen over 50% in the past year. Ubisoft has yet to publicly respond to the letter.
Aj Investment contends that Ubisoft's low valuation stems from mismanagement and that shareholders are being exploited by the Guillemot family and Tencent. They criticize the company's focus on short-term gains over 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 underutilization of popular franchises like Rayman, Splinter Cell, For Honor, and Watch Dogs. While Star Wars Outlaws was anticipated to boost performance, its sales have reportedly fallen short of expectations, contributing to the company's share price hitting its lowest point since 2015 – a drop of over 30% year-to-date.
The letter also proposes significant staff reductions, citing the higher revenue and profitability of competitors like EA, Take-Two Interactive, and Activision Blizzard despite their smaller workforces. Ubisoft employs over 17,000, compared to 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 enhance operational efficiency. He suggests selling studios not crucial to the development of core IPs, noting that Ubisoft's 30+ studios are excessive. While acknowledging previous layoffs (approximately 10% of the workforce), Krupa insists that further action is necessary, even beyond the announced cost-reduction targets of €150 million by 2024 and €200 million by 2025.
