Published , by TJ Denzer
Published , by TJ Denzer
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.