Amid its restructuring initiative, the Embracer Group, a Swedish video game and media holding company, disclosed a workforce reduction of 904 employees over the past three months. The company communicated the news after the announcement of its most recent quarterly earnings.
These job cuts account for approximately five per cent of Embracer’s overall workforce, occurring despite a 13 per cent year-on-year increase in net sales to SEK 1.8 billion ($170.5 million) in Q2. Although the latest earnings report suggests a potential improvement in the situation, it is evident that the Group continues to face ongoing challenges.
The layoffs affected personnel at Crystal Dynamics, Gearbox Publishing, and Beamdog studios, leading to the closure of Campfire Cabal and Volition Games. Additionally, staff reductions occurred at Digic, Zen Studios and Cryptic Studio.
The decision comes as the year 2023 has proven challenging for the company, particularly in the aftermath of a reported $2 billion deal with Saudi Arabia. Additionally, it is aimed at transforming the company into a highl cash flow generative business.
In June, the pc/console making firm announced restructuring aimed at alleviating the company’s SEK 16.7 billion ($1.51 million) debt. This involved the cancellation of various projects, closure of studios, and widespread layoffs throughout the organisation. Notably, some highly-anticipated projects, such as the Knights of the Old Republic remake, are now uncertain. Additionally, media reports even suggested the possibility of selling off Gearbox Entertainment, the creator of Borderlands.
In an official media statement, the company acknowledged that it is a challenging process. It also stated that efforts will be made for those affected with transition opportunities and transparent communication throughout the programme.