Tyneside video games studio Ubisoft reflections has told how its global owner is seeking to reposition itself in an "ever-more complex and competitive market" after 100 redundancies were made across two studios.
Ubisoft Reflections forms part of the global group Ubisoft Entertainment SA group, based in France, which operates more than 45 studios based in 30 countries, creating some of the most popular blockbuster video games on the market. At the start of the year the company’s bosses in Paris appointed advisors to help to reshape the global group, setting out plans to make cost reductions of around €200m – a move which included around 185 job losses across a number of European sites.
That number included redundancies to be made in the North East and the Leamington Spa studio, which it also announced was to close. Now the Newcastle business, which has been behind bestselling games including Driver, Watch Dogs and Assassin’s Creed, has published accounts for the year ended March 2025 – its 40th trading year – which outline how 100 redundancies have been made across Tyneside and Leamington Spa in the current financial year.
The average number of employees recorded in the accounts year was 388, down from 393, but it is not known how many redundancies were made following the year end in Newcastle. Turnover dropped slightly from £56.3m to £54m, while operating profit also fell from £25.5m to £23.7m, and overall profit for the year was £20m, down from £22.2m. Total equity, meanwhile, stood at £90.9m, up from £70m.
As well as being a software developer the firm derives income from the ownership of the Tom Clancy brand. A breakdown of turnover showed that the studio’s Tom Clancy brand and associated trademarks brought in £22m, down from £30.8m, but turnover relating to development of games software saw a significant jump, from £25.5m to £31.9m.
In a report signed off by directors, the company said: "Due to Ubisoft’s ongoing global cost-saving review, Ubisoft Reflections has made some significant cost savings for the fiscal year starting in April 2025.
“Approximately 100 roles across the Newcastle and Leamington Spa studios have been made redundant and our Leamington Spa site is closing as Ubisoft seeks to reposition the business in an ever-more complex and competitive market. During the year the company worked on various titles in collaboration with other Ubisoft Studios including some unannounced titles.
“Both the company and the group continue to acknowledge the significant interest rate rises in the Ƶ. The impact of the cost of living on staff continues to be a challenge and where possible measures have been put in place to provide additional support for staff.
“The market in which the group operates is highly competitive. As a result, there is downwards pressure on price and the additional risk of being unable to meet customers’ expectations.
"Policies of constant price monitoring and ongoing market research are in place to mitigate such risks. Although game sales revenues are not directly reported in our financial statements, they do affect our overall results.
“Due to the nature of the market in which the group operates, products are subject to technological advances. The group is committed to the research and development strategy in place and are confident that the company is able to react effectively to the developments within the market.”
During the year the firm celebrated its 40th anniversary with a gallery exhibition at the Tyneside Cinema in Newcastle. The milestone makes it the longest-lasting video games studio in the Ƶ. The games developer was first established in 1984 as Reflections by Martin Edmondson and it became part of Ubisoft in 2007.
