A minority investor, Aj Investment, is demanding a major restructuring of Ubisoft, including a new management team and significant staff reductions. The investor cites several factors contributing to their dissatisfaction, including underperforming recent game releases, lowered revenue projections, and a significant drop in Ubisoft's share price (over 50% in the past year).
The open letter to Ubisoft's Board of Directors, including CEO Yves Guillemot and Tencent, expresses deep concern over the company's strategic direction and long-term value for shareholders. Aj Investment specifically points to delays of key titles like Rainbow Six Siege and The Division, and criticizes the performance of recent releases such as Skull and Bones and Prince of Persia: The Lost Crown, deeming them underwhelming. The investor also highlights the underperformance of Star Wars Outlaws, a title Ubisoft heavily relied on to bolster its financial standing.
Aj Investment's criticism extends to Ubisoft's management, suggesting a replacement for CEO Guillemot to optimize costs and studio structure for improved competitiveness. The investor notes that while Rainbow Six Siege performs well, other franchises like Rayman, Splinter Cell, For Honor, and Watch Dogs have been neglected despite significant player bases. The investor also points to concerns about the rushed release of Star Wars Outlaws.
The letter further proposes significant cost-cutting measures, including staff reductions. Aj Investment highlights the disparity in staffing levels between Ubisoft (over 17,000 employees) and competitors like EA, Take-Two Interactive, and Activision Blizzard, suggesting that Ubisoft's workforce is overly large for its current revenue and profitability. The investor urges staff optimization and the potential sale of studios deemed unnecessary for the development of core IPs. While acknowledging previous layoffs (approximately 10% of the workforce), Aj Investment believes further action is necessary to ensure Ubisoft's long-term competitiveness. The proposed cost reductions of €150 million by 2024 and €200 million by 2025 are deemed insufficient. Ubisoft has yet to publicly respond to the investor's demands.
