Ubisoft Faces Employee Strike Over New Return-to-Office Policy Amid Financial Struggles

Ubisoft, the renowned developer behind the Assassin's Creed series, is facing a significant backlash from its employees in France over a new return-to-office policy. The Syndicat des Travailleurs et Travailleuses du Jeu Vidéo (STJV), a French game workers union, has called for a three-day strike from October 15 to 17, 2024, in response to the company's directive requiring employees to work in the office at least three days a week.

The decision to return to the office was made without consultation with the workers' representatives, according to the STJV. The union emphasized that after more than five years of effective remote work, many employees have rebuilt their lives around their current work arrangements and cannot revert to the previous conditions. The union stated, 'The consequence of its decision will be the loss of our colleagues' jobs, the disorganization of many game projects, and the drastic increase in psychosocial risks for those who remain.'

Financial Challenges and Game Delays

Ubisoft's troubles are compounded by significant financial challenges. The company recently announced a three-month delay in the release of Assassin's Creed Shadows and revised its net bookings forecast downward. This news led to a sharp decline in Ubisoft's share price, dropping by over 17.5% and reaching a multi-year low. The underperformance of Star Wars Outlaws has also contributed to the company's financial woes, including four years of negative cash flow, project cancellations, and delays.

The financial struggles and the delayed release of key games have heightened market sensitivity to Ubisoft's performance and forecasts. This turbulence could have broader implications for the tech and gaming industries, potentially signaling deeper issues within the sector.

Union Demands and Activist Investor Pressure

The STJV is demanding that Ubisoft negotiate a formal agreement on remote work, increase salaries to address the decline in living standards, and restore profit-sharing. These demands come after unsuccessful profit-sharing negotiations, which the union described as having 'unacceptable' proposals from management and a lack of engagement with employee representatives.

In addition to the union's demands, Ubisoft is also facing pressure from activist investors. A group advocating for the sale of the company has garnered support from 10% of Ubisoft's shareholders, adding to the company's strategic and financial challenges.

This strike will be the second major labor action by French Ubisoft employees this year, following a one-day strike in February over annual salary negotiations. French labor laws provide substantial protections for striking workers, making it illegal for employers to retaliate against collective and concerted work stoppages.