The latest studio to be affected by Embracer's «comprehensive restructuring programme» is Insurgency and Day of Infamy developer New World Interactive.
16.11.2023 - 12:27 / eurogamer.net / Lars Wingefors / Starbreeze Studios
Embracer co-founder and CEO Lars Wingefors has confirmed 900 employees were laid off in the past financial quarter, representing five percent of the workforce.
The company is in the midst of a "comprehensive restructuring programme" it announced in June to close studios and cut jobs, to transform the company into «a leaner, stronger, more focused and cash self-sufficient company».
In the company's latest financial report, Wingefors provided an update on restructuring progress, acknowledging the company's «first ever quarter-over-quarter reduction in headcount».
«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,» said Wingefors.
«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 CEO described the quarter as «stable», with company net sales increasing by 13 percent despite a five percent drop in PC and console game sales compared to last year — offset by a boost in tabletop game sales and the entertainment and services segment.
Revenue from PC and console sales dropped by seven percent YoY, which the company attributes to strong sales of Saints Row last year. Remnant 2 has been a success since it was released in July and has now sold over 2m units — it received DLC earlier this week.
Payday 3, meanwhile, received a «mixed reception and performance» due to an «unforeseen error relating to external matchmaking software» — an issue that's since been fixed.
Earlier this month, Embracer's chief operating officer Egil Strunke left the company and reflected on its future, stating «I am positive that Embracer will come out stronger and with a long, bright future ahead of them.»
Strunke's departure followed layoffs in September at Tomb Raider developer Crystal Dynamics and Mythforce developer Beamdog.
Reports have also suggested TimeSplitters studio Free Radical is facing closure.
The latest studio to be affected by Embracer's «comprehensive restructuring programme» is Insurgency and Day of Infamy developer New World Interactive.
German developer Fishlabs is the latest Embracer outfit to experience job cuts.
Three weeks after it was reported by VGC that Free Radical Design was allegedly being threatened with closure, Embracer Group’s CEO, Lars Wingefors, has reportedly acknowledged this threat within a company email (shared with VGC by anonymous sources).
After reports from earlier this month that developer Free Radical Design—which had been working on a revival of classic sci-fi shooter TimeSplitters—was on the verge of being shut down, Embracer CEO Lars Wingefors has seemingly confirmed internally that the studio will be closed before Christmas.
Embracer Group CEO Lars Wingefors has reportedly confirmed to employees that TimeSplitters studio Free Radical is facing closure next month, as part of a sweeping restructuring programme that has already resulted in more than 900 job cuts at the company.
The Embracer mass layoffs train has come for Fishlabs, the Hamburg-based studio behind space shooter Chorus. Embracer have laid off more than half the Fishlabs team - "around 50 people" - as part of a restructuring operation that has already seen the Swedish conglomerate cut over 900 jobs across their business over the summer.
TimeSplitters studio Free Radical Design faces closure before Christmas, Embracer CEO Lars Wingefors has privately acknowledged.
Veteran German game developer Fishlabs is the latest Embracer-owned studio to suffer layoffs, VGC understands.
Embracer boss Lars Wingefors is staying tight-lipped on the current state of the Star Wars: Knights of the Old Republic remake.
The Star Wars: Knights of the Old Republic Remake sparked some serious excitement when it was announced back in 2021. KOTOR is a seriously good RPG and a top-tier Star Wars experience, but at 20 years old it's also very dated. Unfortunately, it has not been smooth sailing since, and at this point there's legitimate doubt that the remake will ever see the light of day. And there was no good news on the status of the game in the most recent Embracer Group financial report—in fact, it was quite the opposite.
"Anything I say to this becomes a headline," said media-weary Embracer CEO Lars Wingefors in response to a question about the Star Wars: Knights of the Old Republic remake, fielding inquiries during an earnings presentation on Thursday. And, like, I get it. But also, can you blame fans for their eagerness to get an update on the project after so many months of silence and uncertainty?
As initially reported by IGN, Embracer CEO Lars Wingefors commented during a financial presentation that he has no comment on the state of the Star Wars: Knights of the Old Republic remake. He also states, “Anything I say to this becomes a headline.” Yes, sir. Yes, sir, it will.