Embattled Embracer Group Confirms More Than 900 Staff Laid Off So Far — and Warns of More to Come

16.11.2023 - 12:03 / ign.com / Lars Wingefors

Embracer Group has said it has laid off 904 staff, or 5% of its workforce, since its financial struggles began following the collapse of a $2 billion deal, reportedly with Saudi government funded company Savvy Games Group.

The Swedish firm has come under fire for the sweeping cuts it has made so far in 2023, including the closure of long-running Saints Row maker Volition. During a financial presentation, Embracer said its internal headcount was reduced by 713 people (511 developers and 202 non-developers), and its external developer headcount was reduced by 191. In total, 15 mostly unannounced projects were “written down” across Amplifier, Freemode, Gearbox, Plaion, Saber, and THQ Nordic, Embracer said.

In a presentation to deliver Embracer's Q2 financial report, CEO Lars Wingefors thanks all the staff he had let go. "Before we get into the business details of our second quarter, I want to start this conference by saying a personal thank you to the 900 people who left Embracer during the second quarter,” he said.

“As you will hear today, we are determined to transform Embracer into a leaner, stronger company. That said, it’s painful to me that you need to leave the group, and we have been, and are doing, everything we can to preserve jobs without changing what we need to achieve.

“Our people are what make up the very fabric of Embracer. For me personally, it’s crucial that the programme is carried out with compassion, respect and integrity.”

It’s not going to stop there either. Embracer said ongoing restructuring, closures, or buy-outs are in process and “will lead to further headcount reductions”. That means more layoffs are coming.

Borderlands developer Gearbox is reportedly up for sale, although IGN sources have said Embracer is struggling to find a buyer at its asking price. Embracer bought Gearbox in February 2021 as part of an acquisition spree that included snapping up Tomb Raider developer Crystal Dynamics, among many other studios.

“Process involving possible consolidation of companies and businesses is ongoing, implementation expected to accelerate in [the fourth quarter of this financial year],” Embracer said. “Our restructuring program is making good progress, with opex savings ahead of plan and capex savings expected to contribute notably in the second half of the year,” Wingefors added. “We continue to take important steps for the future and I am confident that we will emerge as a stronger company.”

Wingefors' comments will do little to reduce the stress and anxiety Embracer’s hundreds of staff currently face going into the holiday season. Earlier this month, VGC reported TimeSplitters developer Free Radical Design is at threat of being closed just two years after it was re-established.