Ubisoft Rehaul and Layoffs Demanded by Minor Stakeholder

A Ubisoft minority shareholder, Aj Investment, is demanding significant restructuring, including a new management team and layoffs, citing underperformance and poor strategic direction. The investor's open letter criticizes the company's recent performance, including the delay of key titles and lowered revenue projections.

Aj Investment argues that Ubisoft's current management, including CEO Yves Guillemot, is failing to deliver shareholder value and prioritizing short-term gains over long-term strategic planning. The investor specifically points to the underwhelming reception of recent releases like Skull and Bones and Prince of Persia: The Lost Crown, as well as the cancellation of The Division Heartland, as evidence of mismanagement. They also highlight the underperformance of Star Wars Outlaws, a title Ubisoft heavily relied on to boost its fortunes.

The investor's concerns have contributed to a significant drop in Ubisoft's share price, falling over 50% in the past year and reaching its lowest point since 2015. Ubisoft has yet to publicly respond to the letter.

Beyond management changes, Aj Investment advocates for substantial cost-cutting measures, including staff reductions. They point to the significantly higher revenue and profitability of competitors like EA, Take-Two Interactive, and Activision Blizzard, despite employing fewer staff. Aj Investment suggests Ubisoft's 17,000+ employee count is excessive and proposes selling underperforming studios to improve efficiency. While acknowledging previous layoffs, they contend that the 10% workforce reduction is insufficient to address the company's challenges.

In summary, Aj Investment's demands represent a significant challenge to Ubisoft's current leadership and strategy. The investor's criticisms highlight serious concerns about the company's long-term viability and call for drastic action to improve its performance and shareholder value.