A minority investor, Aj Investment, is demanding significant changes at Ubisoft, including a new management team and staff reductions, citing poor performance and underwhelming game releases. The investor's open letter expresses deep dissatisfaction with the company's current strategy and leadership.
Aj Investment Calls for Restructuring and Leadership Change
Aj Investment's concerns stem from several factors: the delayed release of key titles, lowered revenue projections, and overall poor performance. The investor specifically calls for a new CEO to replace Yves Guillemot, arguing the current management prioritizes short-term gains over long-term strategic planning and gamer experience.
The investor criticizes the recent performance of several Ubisoft games, including Skull and Bones, Prince of Persia: The Lost Crown, and the cancelled The Division Heartland. While acknowledging the success of Rainbow Six Siege, Aj Investment highlights the underperformance of other established franchises like Rayman, Splinter Cell, For Honor, and Watch Dogs. Even the highly anticipated Star Wars Outlaws, intended to revitalize the company's fortunes, reportedly underwhelmed.
Ubisoft's share price has plummeted, reaching its lowest point since 2015. The company has yet to respond publicly to Aj Investment's letter.
Proposed Staff Reductions and Studio Restructuring
Beyond leadership changes, Aj Investment advocates for significant staff reductions, citing the disparity in employee numbers between Ubisoft and its competitors (EA, Take-Two Interactive, and Activision Blizzard). The investor believes Ubisoft's current workforce of over 17,000 is excessive and inefficient compared to its rivals.
Aj Investment suggests selling underperforming studios to streamline operations and improve profitability. While acknowledging previous layoffs, the investor maintains that further cost-cutting measures are necessary to ensure Ubisoft's competitiveness in the gaming market. The investor's proposed changes aim to restructure Ubisoft for long-term sustainability and shareholder value.
