They could survive if they totally rethink their entire company. There's definitely talented people that work there. They'd have to shed probably 60% of their staff. They'd have to start making higher quality AA games with a rare occasional AAA game. They'd have to start making projects small enough to take some risks and turn a small profit with meager sales. Then if those get a fan base they can slowly scale those things up.
Now it's all reversed. They have the largest employee bloat in the industry probably. They are so large that all they can do is the same few things, made the same way, and they have to sell as much as possible just to pay for the massive scope of the development cost, so it has to be the safest and most predictable product possible, sold with as many upcharge options as possible.
Ubisoft is really the textbook AAA company, so I see it more as a canary in the coalmine situation rather than something unique to them. They're just getting hit first. SQEX is pretty much the same, but they do have a better history of AA projects. They're still stuck in molasses with the same tired IP, the same expensive development and the same dwindling sales.