EMBRACER GROUP IN TURMOIL: OVER 900 EMPLOYEES AXED WITH MORE CUTS LOOMING ON THE HORIZON
Nov 16, 2023 12:54 PMEmbracer Group's Financial Struggles Lead to Extensive Layoffs
Gaming giant Embracer Group has just announced significant layoffs that have impacted its global workforce. In light of recent financial challenges, which began after a failed $2 billion deal, the company confirmed the termination of 904 employees, which constitutes roughly 5% of its total staff. This includes the shutdown of the iconic Saints Row developer, Volition.
The reduction involved 511 developers and 202 non-developers internally, as well as 191 external developers. In addition, 15 projects, primarily unannounced, have been terminated across various Embracer subsidiaries such as Amplifier, Freemode, Gearbox, Plaion, Saber Interactive, and THQ Nordic.
Striving to streamline its operations, Embracer CEO Lars Wingefors expressed his dedication to reshaping the company into a more robust entity. He emphasized the difficulty of the decision and thanked the departing staff, ensuring that the layoffs were approached with integrity and respect.
Further layoffs are on the horizon as restructuring continues, with anticipated consolidations and business efficiencies that hint at another wave of job cuts. Among the subsidiaries, Gearbox Entertainment has been rumored to be under sale negotiations, though a buyer has not been found at Embracer’s asking price.
Despite the downsizing, Embracer reported sales success with games like Remnant 2 and Dead Island 2. Looking forward, highly anticipated game releases in their financial roadmap include Homeworld 3, South Park: Snow Day!, and a number of others. The company also boasts ongoing projects such as Warhammer 40,000: Space Marine 2 developed by Saber Interactive.
These organizational changes coincide with a roster of potentially successful future releases, suggesting Embracer Group's strategic pivot towards more streamlined operations and a focus on strong performing titles.
Casey Loh
Casey Loh is a tech-savvy writer who specializes in the intersection of gaming and technology. With a background in computer science, Casey brings a technical lens to her reviews, breaking down the nuts and bolts of game engines, graphics, and AI innovation.
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Miss Peachy commented on: 2023-11-16 14:08:07
It's always tough hearing about layoffs in the gaming industry; it's a stark reminder of how volatile the business can be, even for big players like Embracer Group. Hopefully, the move towards streamlining operations will not only stabilize the company but also result in even better gaming experiences in the long run, especially with their promising upcoming titles.
Mr. Bison commented on: 2023-11-16 13:58:06
Tough times in the gaming world—Embracer Group's layoffs are a stark reminder that even industry heavyweights aren't immune to financial turbulence. It's a rough patch for sure, but with franchises like Dead Island still kicking butt, there's a glimmer of hope they'll power through this restructure and come out with some killer games.
Rolling R!ck commented on: 2023-11-16 13:48:05
Tough times in the gaming industry as Embracer Group's latest cost-cutting measures show that even behemoths aren't immune to market pressures. It's a stark reminder that successes like Dead Island 2 must be balanced with smart management to weather the financial storms and keep creative teams intact. 🎮💔
