Embracer executive says that restructuring is ‘how we win’

24.11.2023 - 15:07 / techradar.com / Phil Rogers

Embracer Group’s interim chief strategy officer, Phil Rogers, has spoken about the company’s restructuring process, and has referred to the mass layoffs it’s caused as “agonizing” but “a necessary thing for us to hit our new and needed goals.”

In an interview with GamesIndustry.biz, Rogers said that restructuring is “how we win." He added that it’s “got a lot of good conversations going across the business” when it comes to considering how to make the company “leaner, stronger, more focused and – critically – cash self-sufficient,” despite its “agonizing” human impact.

«There's a lot of it going around the industry at the moment of restructuring, but the downside, obviously, is the impact on people,” he said. “It's something that really Embracer feels for.

»It's been an agonizing process to see the sort of headcount [reduction], but we know it's a necessary thing for us to hit our new and needed goals,” he continued. “So overall, good progress and we push on."

It’s worth noting that in Embracer’s latest financial report (published on November 16), it confirmed that as of September 30, 2023, the restructuring program had cut around 5% of the company’s workforce, with 904 people affected at the time. From an external perspective, you can’t help but wonder if that can be considered winning. In the same report, it was stated that the restructuring “is expected to continue through to the end of the current fiscal year and to reduce capex to a run-rate of around SEK 5 billion (approximately $477 million / £380 million) into FY 2024/25.”

Some of those affected include a number of staff within Crystal Dynamics (best known for its work on the Tomb Raider and Gex series), as well as Saints Row studio Volition Games, which was shut down in August. In a statement posted to LinkedIn announcing its immediate closure, Volition thanked customers for their support, and said: “You will always be in our hearts.”

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