Ubisoft shuts down San Francisco studio, affecting 143 employees

SAN FRANCISCO (KRON) -- Video game publisher Ubisoft is shutting down its San Francisco studio, the company announced in a press release this week. The move will lead to 143 employees being laid off.

The studio, located at 300 Mission St. near Oracle Park, is closing because of Ubisoft's development on its XDefiant project discontinuing, the press release states. The business office will remain in San Francisco, a Ubisoft spokesperson told KRON4.

However, some employees -- though the numerical amount was not specified -- working on XDefiant will be reassigned to other roles within Ubisoft. The video game publisher added that another 134 employees based out of its Osaka and Sydney studios are also likely to be laid off.

"Despite an encouraging start, the team’s passionate work, and a committed fan base, we’ve not been able to attract and retain enough players in the long run," Ubisoft Chief Studios and Portfolio Officer Marie-Sophie de Waubert said in part of the press release. "The game is too far away from reaching the results required to enable further significant investment."

XDefiant is a free-to-play first-person shooter video game launched in 2024 and will remain active on its platforms until June 3, 2025.

Ubisoft is the publisher of iconic video franchises such as "Assassin's Creed," "Just Dance" and "Tom Clancy". The company was founded in 1986 in France.

The letter was sent to company employees internally before the public announcement, Ubisoft said. Marie-Sophie de Waubert's full letter regarding the announcement can be viewed here.