United Kingdom, Jan. 22 -- Ubisoft shares plunged by around 34 per cent after the studio confirmed a sweeping internal restructure that includes studio closures, significant cost-cutting, and the cancellation of six projects.

The market reaction followed Ubisoft's warning that it now expects to post an operating loss of roughly €1 billion for the financial year ending 2026, driven in part by a €650 million write-down linked to the overhaul.

The company said the changes were necessary after several years of declining performance following the Covid pandemic, marked by repeated delays to major releases and weaker-than-expected sales.

In a statement, Ubisoft founder and CEO Yves Guillemot said the current market environment re...