Ubisoft CEO Yves Guillemot has attempted to explain the company’s recent push for a further €200 million ($235 million) in cost reductions, which has led to mass layoffs and a spate of game cancellations recently.
Speaking to Variety, Guillemot said the video game industry overall “grew very quickly” coming out of COVID, with people anticipating that the momentum for gaming generated during the pandemic would be sustained. However, this did not “fully materialize,” Guillemot said.
For Ubisoft specifically, Guillemot said this anticipation for future returns “led to too many projects and increased complexity,” and now Ubisoft is making major cuts. The latest of the layoffs hit Ubisoft Toronto, but the team’s Splinter Cell remake remains in development.
