A minority investor, Aj Investment, is demanding significant changes at Ubisoft, including a new management team and staff reductions, following a string of underperforming game releases and a declining share price.
Aj Investment Calls for Ubisoft Restructuring
In an open letter, Aj Investment expressed deep dissatisfaction with Ubisoft's performance and strategic direction. They point to the delayed release of key titles like Rainbow Six Siege and The Division until March 2025, lowered Q2 2024 revenue projections, and overall poor performance as evidence of management shortcomings. The investor specifically suggested replacing CEO Yves Guillemot and implementing a new CEO focused on cost optimization and a more agile studio structure.
Ubisoft's share price has suffered significantly, falling over 50% in the past year, according to the Wall Street Journal. The company declined to comment on the letter.
Aj Investment criticized Ubisoft's management for prioritizing short-term gains over long-term strategic planning and for the cancellation of The Division Heartland. The performance of Skull and Bones and Prince of Persia: The Lost Crown was also deemed underwhelming. While Rainbow Six Siege continues to perform well, other franchises like Rayman, Splinter Cell, For Honor, and Watch Dogs remain largely dormant despite their popularity. Even the highly anticipated Star Wars Outlaws, intended as a turnaround title, has reportedly underperformed expectations.
Aj Investment's Juraj Krupa further advocated for significant staff reductions, highlighting that competitors like EA, Take-Two Interactive, and Activision Blizzard achieve higher revenues and profitability with smaller workforces. Ubisoft's 17,000+ employees, compared to EA's 11,000, Take-Two's 7,500, and Activision Blizzard's 9,500, were cited as evidence of inefficiency. Krupa also suggested selling underperforming studios to streamline operations. While acknowledging previous layoffs (approximately 10%), he stated that further cost-cutting measures are necessary to remain competitive.
