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Ubisoft mandates full RTO amid restructuring, cost cuts and layoffs

• By Anjum Khan
Ubisoft mandates full RTO amid restructuring, cost cuts and layoffs

Global gaming major Ubisoft has announced a sweeping operational overhaul that includes a full return-to-office (RTO) mandate for employees, marking a sharp departure from the hybrid work arrangements adopted during the pandemic.

The move forms part of what the company describes as a major organisational, operational and portfolio “reset” aimed at reclaiming creative leadership, improving execution and restoring long-term growth. Employees across multiple locations will now be required to work from offices five days a week, with limited flexibility through an undisclosed annual allowance of work-from-home days.

Announcing the changes, Ubisoft founder and CEO Yves Guillemot said the company was responding to mounting pressures in the global gaming industry. “The AAA industry has become persistently more selective and competitive, with rising development costs and greater challenges in creating brands,” Guillemot said, adding that the reset is designed to “create the conditions for a return to sustainable growth over time.”

The restructuring comes as game publishers grapple with slowing consumer demand, rising production costs, project delays and tighter financial scrutiny. 

Ubisoft said it is recalibrating its workforce strategy and operating model to align talent more closely with priority franchises and long-term business goals.

Alongside the RTO directive, Ubisoft has confirmed another round of layoffs, the cancellation of six in-development games, and delays to seven additional titles. Projects being axed include the long-awaited second remake of Prince of Persia: The Sands of Time, first announced in 2020, three new intellectual property titles, and one mobile game. A further seven titles have been delayed, including a project widely believed to be the remaster of Assassin’s Creed: Black Flag.

“These decisions are difficult, but they are necessary for us to build a more focused, efficient and sustainable organization over the long term,” Guillemot said. He added that Ubisoft would “discontinue several projects currently in development and provide additional time to certain games to ensure enhanced quality and maximize long-term value.”

The measures follow earlier layoffs at Ubisoft’s Abu Dhabi, Stockholm and Halifax studios and are part of the company’s transition to a new “Creative Houses” operating model. Under this structure, Creative House 1, also known as Tencent-owned Vantage Studios, will oversee major franchises including Assassin’s Creed, Far Cry and Rainbow Six. Creative House 2 will manage shooter franchises such as The Division, while Creative House 3 will focus on live-service titles including For Honor and The Crew.

Guillemot described the Creative Houses model as a “radical move” built around decentralised decision-making, with each unit holding full creative, brand and financial ownership. “By placing creative and financial accountability closer to where value is created, we are strengthening our ability to innovate and execute with greater discipline, flexibility and speed,” he said.

Ubisoft has also reiterated its commitment to artificial intelligence, signalling “accelerated investments behind player-facing generative AI” as part of its future development strategy, alongside a sharper focus on open-world adventures and games-as-a-service experiences.

The full-time return-to-office mandate, however, has drawn strong opposition from employee representatives. French union Solidaires Informatique has organised a strike in Paris, accusing management of worsening working conditions and using workplace policies as a form of “soft layoffs”. “It is out of the question to let [Ubisoft CEO Yves Guillemot] destroy our working conditions,” the union said, adding that “it is the employees who make the games.”

For the broader workplace ecosystem, Ubisoft’s decision reflects a renewed corporate emphasis on physical workplaces, productivity recalibration and tighter workforce alignment as companies navigate economic uncertainty. 

At the same time, experts warn that rolling back flexible work policies in highly competitive creative and digital talent markets could intensify attrition risks, particularly as employee expectations around autonomy and flexibility continue to evolve.