Ubisoft has announced a significant restructuring of its business following a $1.25 billion minority investment from Chinese conglomerate Tencent. This investment has led to the formation of a dedicated subsidiary tasked with overseeing three of Ubisoft’s most successful franchises: Assassin’s Creed, Far Cry, and Rainbow Six Siege. The new entity will include Ubisoft development teams from Montreal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, and is expected to be completed by the end of 2025.

The subsidiary will have its own leadership team and board of directors, with Ubisoft maintaining majority control. CEO Yves Guillemot emphasized that the move aims to create strong, evergreen game ecosystems and foster the long-term growth and success of these brands.

However, Ubisoft has also been making layoffs as part of its ongoing global cost-saving and restructuring efforts. Recently, 19 employees were laid off at Ubisoft Red Storm, the studio known for the Tom Clancy games, including Ghost Recon and Star Trek: Bridge Crew. The company expressed its commitment to supporting those affected through comprehensive severance packages and career transition assistance.

Over the past year, Ubisoft has closed several studios and laid off hundreds of employees worldwide, restructuring its operations to focus on gameplay quality and sustainable growth.

The Tencent investment and subsidiary creation mark a pivotal moment for Ubisoft, seeking to stabilize finances while driving innovation within key franchises.

Image Caption: Ubisoft Red Storm office, the studio impacted by recent layoffs.