- Embracer Group announced the restructuring plan in June.
- In less than three months, they have laid off 900 employees.
- They have also shut down many studios.
Not too long ago, in June, Embracer Group announced a restructuring plan, leading to the closures of many studios. With around 17,000 employees, the company sought to reduce these numbers. This also led to various games being canceled.
Following this statement, Embracer Group shut down several studios. CEO Lars Wingefors has also confirmed that 900 employees were laid off in the second quarter.
Why it matters: Thousands of developers from various studios have lost their jobs this year. This includes big studios like PlayStation, Xbox, and more.
Embracer Group has released an interim report today, sharing updated sales figures for games like Remnant 2. It also confirmed titles like Payday 3 failed to match expectations after a poor release.
Elaborating on the restructuring plan, CEO Lars Wingefors broke the sad news and confirmed that just under 1,000 employees had been let go. He stated:
“It’s crucial that the programme is carried out with compassion, respect, and integrity.”
He thanked all the 900 employees who have left the studio in the last three months. Lars Wingefors stated that it’s painful to see all these people laid off, and they are trying their best to achieve the goal of making Embracer Group a linear studio without such layoffs in the future.
The figure accounts for around 5% of the company’s total workforce. According to the CEO, Embracer Group will try to preserve the remaining talent and studios. This is a massive number matched only by Epic Games’ 830 layoffs not too long ago.
These layoffs may impact the company’s current titles since it was planning to release over 234 games by 2026 as of last year.
During these recent months, Embracer Group has shut down studios like Volition Games, which were known for developing the Saints Row franchise. It has also shut down Campfire Cabal.
Many studios like Gearbox Publishing, Zen Studios, Crystal Dynamics, and others have seen layoffs, while others like Gearbox have also been put on sale since Embracer Group wants to become a linear company.
While this is another unfortunate piece of information, layoffs have become all too common in the industry recently. Major gaming giants like Ubisoft have reported similar job cuts recently, leading to a grim atmosphere for developers all around the world.
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