Ubisoft posts record €1.5B net loss; cuts 1,200 jobs

Ubisoft reported a record net loss of 1.5 billion euros (US$1.73 billion) for the year ended March 31, driven by game delays, restructuring costs, and seven project cancellations. The French video game maker is consolidating operations by grouping half its studios into five creative houses and cutting approximately 1,200 jobs, reducing staff to about 16,700. A 1.2 billion euros (US$1.35 billion) investment from Tencent, which acquired a 26.32% economic stake in Ubisoft subsidiary Vantage Studios, provided financial relief during the downturn.

Financial Performance

Net bookings fell 17.4% to just over 1.5 billion euros (US$1.74 billion) for the full year. Fourth-quarter net bookings dropped 54% to 415 million euros (US$481 million).

Restructuring and Cost Actions

Ubisoft is seeking 200 million euros (US$232 million) in annual savings over two years, following earlier cost reductions of 300 million euros (US$348 million). The company cut approximately 1,200 jobs over the past year, bringing total staff to about 16,700.

Forward Outlook

The company stated that 2026-27 would likely be a low point with a high single-digit drop in net bookings.

Tencent Investment Details

Tencent's 1.2 billion euros (US$1.35 billion) investment granted the Chinese technology company a 26.32% economic stake in Vantage Studios, which oversees the Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six franchises. The arrangement includes a five-year equity lock-up for Tencent.

At year-end, Rainbow Six Siege had monthly active users well above 10 million in March, and the Assassin's Creed franchise recorded more than 30 million unique active players.