Embracer confirms it’s now laid off 1,400 employees and says more cuts could be coming

15.02.2024 - 14:21 / videogameschronicle.com / Lars Wingefors / Tom Ivan

Embracer Group’s ongoing restructuring has resulted in the company cutting 1,400 jobs, or about 8% of its global workforce, it confirmed on Thursday.

The company announced in June that it was implementing a restructuring plan which would involve the closure of studios and the cancellation of projects.

It has since shut companies like Saints Row developer Volition and TimeSplitters studio Free Radical Design, while others have reportedly been put up for sale, such as Borderlands maker Gearbox.

Embracer has also made layoffs at Gearbox Publishing, Tomb Raider maker Crystal Dynamics, Knights of the Old Republic remake studio Beamdog, Pinball FX maker Zen Studios, and Deus Ex studio Eidos Montreal, among others.

The company confirmed on Thursday that 483 employees were let go during its third fiscal third quarter ended in December 2023.

Added to the 904 employees laid off during the previous quarter, that takes the total number of jobs cut due to its restructuring to 1,387.

Embracer cancelled 29 unannounced games and closed seven internal studios during the six months ended in December.

Group CEO Lars Wingefors said today that the restructuring plan is entering its “final stretch”, but he warned that more cuts could be coming as the company looks to sell off more assets.

“As part of the restructuring program, Embracer still has a few larger structured divestment processes ongoing that could strengthen our balance sheet and further reduce capex,” he said.

“Processes are in mature stages. It’s important to add that certain companies might initiate restructuring before any divestment is announced.

“However, our overruling principle is to always maximize shareholder value in any given situation. We are unlikely to reach the target under the restructuring program of below SEK 8 billion in net debt by March 31, 2024. However, certain divestments could significantly reduce net debt post March 31.”