Ubisoft shares plunged 33% on Thursday morning after the maker of the "Assassin's Creed" games announced a major organizational shakeup, alongside plans to shut studios and axe six games.
The changes come following years of stock price decline, following the Covid-19 pandemic, after delays to major releases and financial struggles.
The company said it expected to make an operating loss of around 1 billion euros ($1.17 billion) in the financial year ending 2026, following a 650 million euro write-down caused by the restructure. It would consider selling assets, Ubisoft said in a statement on Wednesday evening.
"Today's market environment requires that the Group step-changes how it is organized and operates," Yves Guillemot, Founder and CEO of Ubisoft, announced in the statement.
"The portfolio refocus will have a significant impact on the Group's short term financial trajectory, particularly in fiscal years 2026 and 2027, but this reset will strengthen the Group and enable it to renew with sustainable growth and robust cash generation."
Ubisoft said studios in Halifax, Canada and Stockholm would close, with restructurings in those in Abu Dhabi, Helsinki and Malmö.
The company expects cost-cutting measures to save 500 million euros ($580 million) and bring fixed costs to 1.25 billion euros ($1.46 billion) on a run-rate basis by March 2028, compared to 1.75 billion ($2.35 billion) in the financial year ending 2023.
Ubisoft said it now expects net bookings of around 1.5 billion euros ($1.75 billion) for the financial year ending 2026, a drop of 330 million euros compared to previously issued guidance.