Ubisoft Overhaul Demanded

Following a string of disappointing game releases and underwhelming financial performance, Ubisoft faces pressure from a minority investor to restructure its management and workforce.

Minority Investor Calls for Ubisoft Restructuring

Aj Investment Claims Last Year's Downsizing Insufficient

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, the investors expressed deep dissatisfaction with the company's current trajectory and performance.

The letter cites the delayed release of key titles, such as Rainbow Six Siege and The Division, until late March 2025, coupled with a lowered Q2 2024 revenue forecast and overall poor performance, as major concerns. Aj Investment directly proposed a leadership change, stating a need for "a NEW CEO who will optimise the cost and studio structure for more agile and competitive company."

This pressure has contributed to a decline in Ubisoft's share price, reported to have fallen over 50% in the past year by the Wall Street Journal. Ubisoft has yet to publicly respond to the letter.

Aj Investment further argues that Ubisoft's low valuation is a direct result of mismanagement and that existing shareholders are being disadvantaged by the Guillemot family and Tencent. The investor criticizes the company's focus on short-term financial results over long-term strategic planning and delivering exceptional gaming experiences.

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

While Star Wars Outlaws was intended as a major turnaround, its sales have reportedly fallen short of expectations, exacerbating the decline in Ubisoft's share price to its lowest point since 2015, representing a drop of over 30% year-to-date.

The letter also proposes significant staff reductions. Comparing Ubisoft's 17,000+ employees to the smaller workforces of competitors like EA (11,000), Take-Two Interactive (7,500), and Activision Blizzard (9,500), Krupa argues for "significant cost reductions and staff optimization" to enhance operational efficiency. He suggests selling underperforming studios to streamline operations. He further states that the current 10% workforce reduction is insufficient and that the announced cost-cutting measures are not aggressive enough to ensure long-term competitiveness.