Embracer Group has been hit with some of the biggest layoffs in the gaming industry to date. The company announced that it would be dismissing 5% of its workforce resulting in over 900 job cuts across its various studios. To make matters worse, Embracer Group is also shutting down the development of 15 games.
Embracer Group has a rocky history. It has gobbled up over 100 studios and IPs since back in 2017 including big names such as Saber Interactive, Vertigo Games and Crystal Dynamics. However, its spending spree hasn’t resulted in much profit. Many of the company’s projects this year include Dead Island 2, which was in development hell for around ten years. PayDay 3 didn’t perform well and Embracer Group also shut down Volition after the failed launch of the Saints Row reboot.
In an earnings report, Embracer Group shared financial stats for the past few months. It confirmed that across its various divisions, there were losses and profits. The company says the past few months have been better with the launch of Dead Island 2, Remnant II and its expansion and Teardown for consoles.
It followed up by outlaying the future titles too including Homeworld 3, South Park: Snow Day, Arizona Sunshine 2, Alone in the Dark and Warhammer 40,000: Space Marine 2. However, it is still too early to tell how well these games will sell.
At the end of the report, the company confirmed that 900 jobs are being cut to restructure the company’s financial outlook. Co-founder and Group CEO Lars Wingefors said:
“As of September 30, 2023, the restructuring program contributed to Embracer’s first ever quarter-over-quarter reduction in headcount of around 900 people, or 5 % of the workforce. In this group-wide effort, we are not only discontinuing a number of studios, we have also made staff reductions and reduced the number of projects in several other studios, with a focus on improving the projected return on investment within PC/Console. It’s never easy to part ways with talented individuals. I would like to put on record a special thanks to the people who have left Embracer in the quarter. These are difficult decisions and we do not take them lightly. For me, personally, it is crucial that the program is carried out with compassion, respect, and integrity.”
The financial report also confirmed that 15 in-development projects are being shut down at Embracer Group. This is to help with the restructuring process. However, the company didn’t confirm exactly what games are on this list. They likely include unannounced projects.