Shares of the Assassin’s Creed and Far Cry maker plunged by as much as 35% on Thursday, putting the company on course for its steepest one-day decline since its stock market debut in 1996. The sell-off followed Wednesday’s announcement of a broad overhaul aimed at addressing years of weak performance and financial strain.
Under the new plan, the Paris-based company will restructure its operations into five creative divisions organised by genre, a move Ubisoft says is intended to sharpen strategic focus and rein in rising costs after a series of disappointing releases.
As part of the shake-up, Ubisoft confirmed it would abandon development of six titles, including a highly anticipated remake of Prince of Persia, while seven other games have been delayed. The company also cut its net bookings forecast for 2026 and withdrew financial guidance for the 2026/27 fiscal year, adding to investor concerns.
Ubisoft said it would close its studios in Halifax, Canada, and Stockholm, alongside restructuring efforts in other countries. The company did not provide detailed figures on potential job losses but described the measures as necessary to stabilise operations.
The latest overhaul comes after several turbulent years marked by repeated delays, cancellations, and execution issues that have eroded investor confidence and weighed heavily on Ubisoft’s balance sheet. In November 2025, the company stunned markets by postponing the release of its half-year results at the last minute, leading to a week-long suspension of trading in both its shares and bonds.
Ubisoft later disclosed that an accounting change had revealed a breach of a debt covenant, forcing the group to use part of the proceeds from Tencent’s €1 billion investment to repay outstanding loans early.
Reacting to the announcement, Corentin Marty, an analyst at TP ICAP Midcap, described the move as “the big shake-up,” warning that financial pressures remain intense.
“The prospect of a return to positive cash generation appears remote, and the maturity of the €675 million bond in November 2027 is likely to put additional pressure on the group’s financial structure,” Marty said.
By early Thursday trading, Ubisoft shares were hovering around €4.5, valuing the company at approximately €616 million ($720 million). The stock nearly halved in value last year and has now fallen well below the €1 billion market capitalisation mark, a sharp decline from its peak of around €11 billion in 2018, according to LSEG data.
The dramatic fall underscores the scale of the challenge facing Ubisoft as it attempts to reset its strategy and regain investor trust in an increasingly competitive global gaming industry.