- Embracer Group is nearing the end of its restructuring plan.
- Since last year, the publisher has canceled 29 unannounced games in the last six months.
- It has also laid off around 1,400 workers from the company.
Embracer Group hasn’t gone easy on anyone since it announced a restructuring plan last year, leading to layoffs and studio closures. This led to the closure of Volition Games, Free Radical Design, and more studios.
However, it also meant that many games were canceled before they could see the light of day. According to the latest financial report, this restructuring plan has led to 29 cancellations.
Why it matters: Embracer Group’s actions are often used as examples of the negative impacts of industry consolidation. The corporation brought various studios over the years, but only a few have a bright future under this company.
During the first fiscal quarter, which ended in June, Embarcer Group had 153 unannounced games in development from both internal and external studios they were financing.
The numbers dropped to 138 in the second quarter. By the third quarter, which ended in December, the number dropped to 124, suggesting that the publisher scrapped 29 projects.
While we reported that Embracer Group had laid off over 900 employees by November 2023, this figure has gone up since then. The publisher’s layoff count has increased to 1,387, which is around 8% of the total workforce.
The layoffs include the removal of 871 internal game developers, 264 external developers, and 252 internal non-developers. Amid closures, Embracer Group also appears to have lost a total of seven internal development studios.
The publisher now owns 132 internal studios. Meanwhile, external studios have gone down from 59 to 50. All of this shows the extent of this restructuring plan, though the publisher believes it was necessary.
Among the many canceled projects, one was a new entry in the Deus Ex franchise, which also triggered layoffs at Eidos Montreal.
Embracer Group is now at the finish line, but its restructuring plan has left even further room for layoffs and job cuts. The CEO recently stated that the company will be trimmed down further before the plan is finished.
Fortunately, the conclusion is expected soon. Therefore, the company should be done by the time it releases the next quarterly financial earnings report.
While Embracer Group may not be the only one to go through such layoffs this year, the corporation has made the most extensive job cuts. Elsewhere, the likes of Microsoft recently laid off 1,900 employees.
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