Following a string of underperforming releases and setbacks, Ubisoft faces pressure from a minority investor, Aj Investment, to restructure its management and workforce.

Aj Investment Calls for Ubisoft Restructuring

Aj Investment, a significant Ubisoft shareholder, issued an open letter demanding a complete overhaul. The letter calls for the company to go private, install new leadership, and significantly reduce its workforce. The investor cites the postponement of key titles, lowered revenue projections, and overall poor performance as reasons for their deep dissatisfaction with the current management's long-term strategy. Specifically, Aj Investment suggests replacing CEO Yves Guillemot with a new CEO focused on cost optimization and improved studio structure.

Ubisoft's share price has plummeted over the past year, falling more than 50%, according to the Wall Street Journal. The company declined to comment on the letter.

Aj Investment criticizes the current management for prioritizing short-term gains over long-term strategic planning and delivering a superior gaming experience. The investor points to the cancellation of The Division Heartland, and the underwhelming reception of Skull and Bones and Prince of Persia: The Lost Crown, as evidence of poor decision-making. Furthermore, Aj Investment notes the underperformance of several established franchises and expresses concern about the rushed release of Star Wars Outlaws, despite high expectations.

Aj Investment's Juraj Krupa also advocates for significant staff reductions, citing the higher revenue and profitability of competitors like Electronic Arts, Take-Two Interactive, and Activision Blizzard, despite their smaller workforces. Krupa suggests that Ubisoft's over 30 studios and 17,000 employees are excessive, and that selling underperforming studios is necessary to improve operational efficiency. While acknowledging previous layoffs, Krupa asserts that further cost-cutting measures are crucial for long-term competitiveness. The investor believes Ubisoft's current cost-cutting plans are insufficient.