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 - 12:45 / gamesindustry.biz / Lars Wingefors
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Embracer has released its latest financial results, as well as an update on the restructuring programme that has led to mass layoffs and various studio closures.
For the three months ended September 30, the company reported net sales had risen 13% year-on-year to SEK 10.8 billion ($1 billion). Meanwhile, its net debt has been reduced to SEK 14.6 billion ($1.4 billion), marking a 31% improvement on where it stood at the same point last year.
The company also confirmed that 904 people have been laid off as part of the restructure.
Here's what you need to know:
Q2 (June - September 2023)
H1 (April - September 2023)
Embracer announced in June that it is undergoing a restructuring program following the collapse of a deal that was expected to be worth at least $2 billion.
In its financial results, the group detailed the milestone it's currently aiming for, which include:
Reducing its capital expenditure by at least SEK 2.9 billion ($274.5 million) by the beginning of the next financial year on March 31, 2024 Reducing its overhead costs by at least 10% or SEK 800 million ($75.7 million) Reaching a net debt of SEK 8 billion ($757.1 million) by the end of its current financial year
The company reported the first phase of its capital expenditure reductions have been completed, and the second phase is currently underway following a review of the group's pipeline of upcoming PC and console games.
This review saw 15 projects, mainly unannounced titles, from Gearbox, Plaion, Saber Interactive, THQ Nordic, Amplifie and Freemode being written down.
The latest reporting period was also the first time Embracer has seen a quarter-over-quarter reduction in headcount, with 904 people – 5% of the group's workforce – dismissed as of September 30.
This includes layoffs at Crystal Dynamics, Gearbox Publishing and Beamdog, as well as the closures of Campfire Cabal and Saints Row developer Volition Games.
However, the total number of jobs cut will be higher, as Embracer has since laid off staff from Digic, Zen Studios and Cryptic Studios.
In the financial results report, CEO Lars Wingefors said: "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 restructure is primarily focused on its PC and console development, with Embracer reporting that its mobile, tabletop gaming, and entertainment and services segments "provide a solid foundation with predictable,
The latest studio to be affected by Embracer's «comprehensive restructuring programme» is Insurgency and Day of Infamy developer New World Interactive.
It’s been a tough ol’ year for people working in the corporate video game world. Publishers and studios have been laying people off at an alarming rate. Embracer Group is just one example, and it’s recently been suggested that the holding company may be closing down Free Radical Design.
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).
Free Radical Design, the second iteration of the Timespliters and Haze studio, might very well be closed before this Christmas.
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.