The decision was made to assist in the restructuring of the company. UPDATE: Cancelled titles were unannounced.
Ubisoft has announced that they have cancelled several titles in favor of reorganizing the roles and operations of many of their studios.
The announcement was described during their financial report as a restructuring exercise. The official Ubisoft statement is as follows:
"Ubisoft has taken measures to adapt its structure to major changes in the industry by reorganising the roles and operations of its studios, which has resulted in the termination of certain projects."
No word was given as to what titles were cancelled in the process, but the long-delayed Beyond Good and Evil 2 is rumored to have been one of them.
UPDATE: Ubisoft has commented to Eurogamer that the cancelled titles were all unannounced games, and Beyond Good and Evil 2 is still in development. A Ubisoft representative stated that "Terminated projects were unannounced projects,".
Special thanks to BlackNMild2K1 for the news tip