After ending the year 2022 with some quite discouraging numbers, Ubisoft has made a difficult decision: to close some of its offices. This has not been easy at all and, therefore, they have had to spend 3 months before considering this possibility. And it is that, after analyzing the statistics of the last quarter of December, there was no other alternative. The data has left much to be desired.
However, it seems that the situation is not going to improve in the short term. In fact, the company estimates that significant losses will occur throughout this year, approximately 500 million euros. Although circumstances may change, it seems that Ubisoft has lost hope regarding its sales and this is why it has decided to close some of its offices, which are still open.
The decision will affect about 60 employees
This situation is quite complicated, since of the 20,000 employees that the company has, according to data offered on its website, 60 could be affected by this difficult decision that has been well thought out. Although it is something that Ubisoft did not expect, after the analysis of the closing of the previous year, there was no other option.
The main problem has been that Christmas sales have been too disappointing. It is a time of the year in which there is usually a high demand for products, such as video games, however, the reality has been very different from what was expected. If on such special dates and where people buy more the numbers plummet, during the rest of the year the situation will not be different.
The most recent launches have not been successful
Some of Ubisoft’s recent releases have been Avatar: Frontiers of Pandora, xdefiant either The Crew Motor Festival. However, its success has not been what the company expected. Although there are many interesting games ready for pre-order, such as Assassin’s Creed Mirage either Skull and Bones, expectations are not the same as before. Therefore, before circumstances worsen further, measures have been taken.
The reasons why this has occurred, the company believes, have to do with the current economic situation. Consumers are going through a major crisis and this has had an impact on the decline in sales that occurred last Christmas. Since this doesn’t seem like it will be resolved any time soon, Ubisoft’s estimates regarding them have changed quite a bit.
However, the company also believes that the blame may lie in the release of games that no longer attract as much attention and those that they no longer have online functions. Therefore, Ubisoft has had no choice but to come up with a plan that not only includes the closure of some of its offices, but also a reduction in costs in the following 2 years to make some important changes.
The offices in Spain will be among the first to close, as well as those of Italy, the Netherlands, Poland and the Nordic countries. Although this affects about 60 employees, this figure may increase. Well, Ubisoft’s plan to mitigate losses may mean closing more stores over time and laying off their workers.
The truth is that This beginning of the year is not being anything positive for Ubisoft, although with the strategy they have in mind they hope to be able to recover in the long term. However, the news, for the moment, is not encouraging and there will be many employees who, in the midst of this crisis, will end up losing their jobs.
