Ubisoft Announces Layoffs and Studio Closure Amid Star Wars Outlaws Failure on Nintendo Platforms

Amid ongoing financial headwinds, Ubisoft has confirmed it is reducing its workforce by 185 positions and nearly closing its Leamington studio in the UK.

The move follows underwhelming sales of Star Wars Outlaws—a title developed in part by the Ubisoft Leamington team and initially positioned as a major project for the publisher.

The decision marks another chapter in a turbulent period for Ubisoft, which has faced mounting pressure to cut costs and streamline its operations. The layoffs, first reported by GamesIndustry.biz, will primarily affect the Leamington location—the hardest hit in this round of restructuring.

Ubisoft representatives explained that this reduction is part of a "readjusting effort" designed to refocus investment on core projects and reinforce the company’s position in an increasingly competitive market.

A Ubisoft spokesperson stated that the company remains committed to supporting its existing line-up and future releases on key platforms like the Nintendo Switch and the widely anticipated Nintendo Switch 2. Star Wars Outlaws, which debuted to high expectations, struggled commercially after its release, failing to meet Ubisoft’s projected sales targets.

Industry analysts point to these results as a major factor prompting the publisher’s defensive measures, as Ubisoft cannot afford significant setbacks given the current pressures facing the gaming sector.

The company had recently made headlines for exploring new ventures and repositioning assets, according to information from GamesIndustry.biz, but the recent layoffs underscore the urgency of Ubisoft’s current cost-control strategy. Despite these challenges, Ubisoft has affirmed its commitment to upcoming hardware.

Company leadership has signaled ongoing enthusiasm around the Nintendo Switch 2, confirming that more than half a dozen titles are actively in development for Nintendo’s next-generation platform.

This strategic focus aligns with Ubisoft’s broader aim to prioritize releases on high-performing and rapidly growing hardware, leveraging both established franchises and new intellectual properties for the Nintendo ecosystem. As Ubisoft navigates this period of transition, the closure of much of the Leamington studio and staff reductions serve as a stark reminder of the volatility in today’s gaming landscape.

The effects will be closely watched by both investors and fans, with the community awaiting further announcements regarding Ubisoft’s project lineup and future collaborations with Nintendo.

For breaking developments on Ubisoft, Nintendo Switch, or upcoming eShop releases, stay tuned to our continuing coverage.