Embracer Group AB THQQF has recently undergone a significant workforce restructuring.
Restructuring Details: The Swedish video game and media holding company has reduced 8% of its global workforce, resulting in 1,387 employee layoffs since June.
The reduction includes 904 job cuts in the second quarter and an additional 483 in the third. Embracer also ceased development on 29 unannounced games during this period, as reported by IGN.
CEO Lars Wingefors expressed the difficulty of these decisions, emphasizing the necessity to part ways with team members and reiterated that the layoffs were handled with compassion, respect, and integrity.
Embracer is also in the process of selling parts of its business, including Gearbox, which it acquired in 2021. Wingefors cautioned that more layoffs may occur at Embracer’s studios before any sale is finalized.
Wingefors emphasized the company’s commitment to maximizing shareholder value in every situation. Although Embracer may not meet its net debt reduction target by the end of the fiscal year, it anticipates significant reductions post-March 2024 through divestments.
Embracer’s financial challenges stem from the collapse of a $2 billion deal and criticism for past cuts, such as the closure of Volition, creator of Saints Row. Notable acquisitions in Embracer’s history include Darksiders, Red Faction, and the BioMutant IP.
Recent developments include the cancellation of a new Deus Ex game and layoffs at various studios, including Eidos Montreal and Black Forest Games. Despite underperforming titles, recent releases like Deep Rock Galactic: Survivor and Tomb Raider 1-3 Remastered have shown promising sales.