Embracer Group announces restructuring plan, layoffs & studio closures expected
While CEO Lars Wingefors announced that layoffs will be happening, he could not provide forecasts on just how many jobs will be terminated.
Embracer Group is about to go through a major restructure in an attempt to cut costs and add increased stability to it’s fiscal year. The company announced a plan to restructure its overall business, which will include layoffs, studio closures, and the termination of various ongoing video game development projects. The exact estimate on layoffs is unavailable at this time.
The plan for Embracer Group to restructure was posted on its investor relations website on June 13, 2023, as well as an open letter from CEO Lars Wingefors addressing the restructure and what exactly it will entail.
Embracer had a rough run of recent financial news leading up to the announcement of its new restructuring plan. The company revealed in its Q4 2023 interim financial report that it had what was supposed to be a $2 billion USD deal unexpectedly fall through. Embracer Group never shared what the deal was for or with whom, but the company’s share price took a dive on the news and has yet to recover. It hasn’t been all bad for Embracer. The company was able to claim success on the launch of Dead Island 2, which crossed 2 million in unit sales and marked the most successful launch of the franchise.
Nonetheless, with no current estimates on upcoming closures, cancelations, and layoffs, it looks like more difficult times ahead for Embracer Group. Stay tuned as we continue to follow for updates to this story.
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TJ Denzer posted a new article, Embracer Group announces restructuring plan, layoffs & studio closures expected
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Embraced announces a restructuring plan, typical cost cutting and back to core competencies, focus on high return games
https://embracer.com/releases/embracer-group-announces-comprehensive-restructuring-program-with-immediate-implementation/
Message from the CEO
https://embracer.com/mfn_news/open-letter-by-embracer-group-ceo-on-restructuring-program/-
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Amazon is paying for the next Tomb Raider game and the one after that. Its safe. I imagine if it came down to it, Amazon would just buy the studios needed https://www.polygon.com/23510939/tomb-raider-crystal-dynamics-amazon-games
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