Ubisoft Faces Turbulent Times as Employees Demand Change

The French video game union Syndicat des Travailleurs·ses du Jeu Vidéo has called for Ubisoft employees to strike, as the company faces a series of setbacks, including the failure of its highly anticipated Star Wars Outlaws game and the delay of the Assassin's Creed Shadows title. The union's demands for improved working conditions and better compensation have put Ubisoft in a precarious position, with the company's future hanging in the balance.

Ubisoft's Woes: A Perfect Storm of Challenges

The Fallout from Star Wars Outlaws and Assassin's Creed Shadows

Ubisoft's recent struggles have been exacerbated by the disappointing performance of its highly anticipated Star Wars Outlaws game and the delay of the Assassin's Creed Shadows title. The failure of Star Wars Outlaws has dealt a significant blow to the company's reputation and financial standing, with Ubisoft admitting that the game's sales were "softer than expected." This setback has forced the company to slash its net expected bookings for the second quarter by a staggering 30%, from €500 million to between €350-370 million. The delay of Assassin's Creed Shadows, a flagship franchise for Ubisoft, has further compounded the company's woes, as it grapples with the impact on its yearly net bookings expectations, which have been lowered to €1.95 billion. Ubisoft has also revealed that it expects "around break-even non-IFRS operating income and free cash flow," signaling a significant financial strain on the company.

Employees Demand Change: The Union's Call to Action

In the midst of these challenges, the French video game union Syndicat des Travailleurs·ses du Jeu Vidéo has stepped up, calling for Ubisoft employees to strike on October 15, 16, and 17. The union's demands are multifaceted, reflecting the employees' dissatisfaction with the company's recent decisions and the need for a more collaborative and transparent approach. The union's primary demands include a formal agreement on remote work, with a negotiation process that guarantees employees the freedom to choose their number of remote days and the flexibility to do so on a monthly basis, rather than a weekly basis. Additionally, the union is calling for an immediate increase in all salaries to compensate for the drop in living standards, the restoration of profit-sharing at a 60% objective, and the elimination of the gender pay gap, with a focus on increasing low salaries.

Ubisoft's Response and the Implications of the Strike

Ubisoft's decision to demand that employees work in the company's offices for three days per week has been met with strong opposition from the union. The union believes that this move is a consequence of the company's recent failures and is intended to address the "loss of our colleagues' jobs, the disorganization of many game projects, and the drastic increase in psychosocial risks for those who remain." The union's call for a strike is a clear indication of the employees' frustration with the company's management and their desire for a more collaborative and transparent approach to decision-making.

The Broader Implications: Ubisoft's Future Hangs in the Balance

The ongoing turmoil at Ubisoft has far-reaching implications for the company's future. The failure of Star Wars Outlaws and the delay of Assassin's Creed Shadows have dealt a significant blow to Ubisoft's reputation and financial stability, and the union's call for a strike has the potential to further disrupt the company's operations. As Ubisoft grapples with these challenges, the company's ability to navigate the turbulent waters and regain the trust of its employees and the gaming community will be crucial in determining its long-term success. The outcome of this conflict will not only impact Ubisoft but also send a strong message to the broader video game industry, highlighting the importance of fostering a healthy and collaborative work environment for employees.