Ubisoft's "Major Reset": Inside the Paris HQ Layoffs and the Restructuring of a Gaming Giant

On January 26, 2026, Ubisoft CEO Yves Guillemot announced a "major reset" for the storied publisher, a strategic pivot aimed at securing the company's future. Mere days later, the human cost of that corporate recalibration came into sharp focus: the initiation of a process to cut up to 200 jobs at its historic Paris headquarters through a voluntary redundancy scheme. This one-two punch—a grand vision for operational rebirth followed immediately by a stark reduction in force—has sent shockwaves through the industry. Framed by a catastrophic 34% stock plunge and labeled "disastrous" by union representatives, this moment represents a pivotal and turbulent chapter for the Assassin’s Creed publisher. It culminates years of challenges, including high-profile game delays, criticism of formulaic open-world design, and struggles to adapt to live-service and subscription models. The central, unsettling question now hangs in the air: is this a necessary strategic pivot for survival in a brutal market, or a mismanaged crisis where financial recovery is built on the shoulders of its workforce?

The Announcement That Shook the Industry

The stage was set on January 26 with a sobering address from CEO Yves Guillemot. The announced "major reset" was not a minor course correction but a fundamental overhaul of Ubisoft's strategy and structure. The core financial imperative was clear: a drastic reduction in operating costs by €200 million over the next two years. This goal, however, was unveiled against a backdrop of severe and ongoing financial erosion.

The market’s reaction was swift and brutal. Ubisoft’s share price fell by approximately 34% following the news, plummeting to its lowest point since 2011. This staggering drop crystallized a reported, years-long decline that saw the company's valuation tumble from a peak of around $10 billion to roughly $500 million over the preceding eight years under Guillemot’s leadership. The "reset" was thus perceived not as a proactive move from a position of strength, but as an emergency intervention for a company in deep distress.

The Restructuring Blueprint: Creative Houses and Cuts

The architectural plan for this reset involves dismantling Ubisoft’s traditional studio hierarchy. The company is reorganizing into five new, dedicated "Creative Houses," each intended to focus on specific flagship brands or genres, supported by centralized production and operations teams. The theory is one of streamlined focus and accountability.

The practical consequences of this shift, however, are severe and immediate. To prune its portfolio and concentrate resources, Ubisoft has canceled six projects in development. Among the casualties is the long-troubled Prince of Persia: The Sands of Time remake, a symbol of development hell, alongside three unannounced new IPs. A further seven titles have been delayed, pushing potential revenue far into the future. These cancellations represent not just lost potential revenue, but the dissolution of years of creative work for hundreds of developers.

The studio footprint is also shrinking. The company stated it will "selectively close several studios," a directive already previewed by the recent shuttering of its offices in Stockholm and Halifax. The cumulative financial impact of these delays, cancellations, and suspended partnerships is projected to be devastating in the short term: an additional operating loss of approximately €1 billion for the 2026 financial year. It is a staggering price tag for corporate transformation.

The Human Impact: The RCC Process at Paris HQ

The strategic blueprint quickly translated into personal uncertainty for hundreds of employees. Ubisoft has initiated a Rupture Conventionnelle Collective (RCC) process at its Paris headquarters. Under French labor law, an RCC is a collective, voluntary mutual termination agreement, a form of incentivized redundancy where employees can volunteer to leave under negotiated terms. For an employee, the RCC presents a fraught choice: accept a negotiated exit during turmoil, or risk being forced out later.

The scale of the proposed cut is significant. The company is targeting up to 200 positions, which represents nearly 20% of the roughly 1,100 employees based at the Paris HQ. It’s crucial to note that this offer applies exclusively to Ubisoft International employees under French contracts at that location, not to development studio staff across the country.

The process is not yet finalized. By law, no final decision will be made until a collective agreement is reached with employee representatives and validated by French state authorities. This provides a formal channel for negotiation. However, the statement carries an implicit threat: if an insufficient number of employees volunteer, Ubisoft may resort to conventional, involuntary layoffs to meet its target.

Management Strategy vs. Employee Backlash

The chasm between executive rationale and staff sentiment has never been wider. Management has framed every decision as a painful but essential adaptation. CFO Frederick Duguet explained the restructuring was informed by a pipeline review, citing a "more selective" market and intense competition. The goal, he stated, is to focus finite resources on projects with the "strongest potential for success." SVP Marie-Sophie de Waubert framed the changes more starkly, calling it "a radical change in the operating model" and "a major transformation" necessary for midterm growth.

For many employees, this language rings hollow. The French game industry union Solidaires Informatique has been scathing in its response, labeling the overall restructuring announcement "disastrous." The union criticized the timing of the RCC offer and called for strike action. Its demands are a direct rebuttal to management’s plan: an end to the €200 million cost reduction plan, significant pay raises, and improved remote work conditions—the latter a pointed response to a new return-to-office mandate.

This discontent moved from words to action with a strike held outside Ubisoft Paris on January 22, 2026. The union’s criticism has also become intensely personal, taking direct aim at the CEO’s legacy. In a powerful statement, Solidaires Informatique declared, "It is out of the question to let a boss run wild and destroy our working conditions," a clear indictment of Yves Guillemot’s leadership over the past decade of decline.

Two conflicting narratives now define Ubisoft’s crisis. The boardroom narrative is one of a tough, strategic pivot—a "major reset" to shed bloat, focus on core strengths, and build a leaner, more agile company capable of thriving in a new era. The narrative emerging from the studios and offices is one of trauma, a restructuring that places the entire burden of financial recovery on employees through job cuts, project cancellations, and eroded working conditions, all while leadership remains in place.

The path forward is fraught with risk. The success of this reset hinges not just on the performance of future Assassin’s Creed or Far Cry titles, but on whether the company can navigate this period without irrevocably damaging the morale and creative capital of its remaining workforce. For the broader AAA gaming industry, watching a pillar of the European scene undergo such a violent contraction is a sobering signal. Ubisoft's 'reset' has become the industry's starkest warning: the era of sprawling, unfocused AAA development is over. The company's future—and perhaps the model for its peers—now depends on proving that 'leaner and more agile' doesn't mean 'hollowed out and demoralized.'

Tags: Ubisoft, Layoffs, Video Game Industry, Corporate Restructuring, Labor Unions