Embracer Group cancelled 29 games and laid off 1,387 people in late 2023

The cuts were part of a company-wide restructure program initiated in June 2023.
embracer group financial results 2023

Embracer Group’s planned restructure program has led to the cancellation of 29 unannounced video games, and the loss of 1,387 employees across multiple studios. While the wide scope of company’s restructure was relatively well understood, it has now been firmly quantified by the latest financial report from the company.

As highlighted by VGC, Embracer Group noted in pre-June 2023 that it had 153 unannounced games in development across a number of studios. By December 2023, that number was down to 124 unannounced games in development.

While some of these titles may be known – there were reportedly additional Lord of the Rings games in development at Daedalic Entertainment, Free Radical Design’s closure led to the cancellation of a TimeSplitters reboot, and a Deus Ex sequel was also allegedly cancelled after layoffs at Eidos-Montreal – we’re unlikely to learn much about what else was in the works.

Read: Eidos-Montreal hit by major layoffs, new Deus Ex game reportedly cancelled

Unfortunately, the cancellation of these projects is just the tip of the iceberg for Embracer Group, with around 8% of its workforce – 1,387 employees – losing their jobs as part of the company’s sweeping restructure program.

Embracer Group CEO Lars Wingefors did recently claim the restructure program is on the “final stretch” but we may still see further job cuts and studio sales as Embracer Group attempts to recover from the loss of a USD $2 billion deal which inspired a period of over-spending.

“As part of the restructuring program, Embracer still has a few larger structured divestment processes ongoing that could strengthen our balance sheet and further reduce cape,” Wingefors said during the latest Embracer Group earnings report, as transcribed by VGC. “Processes are in mature stages. It’s important to add that certain companies might initiate restructuring before any divestment is announced.”

Wingefors also confirmed a company edict to “always maximise shareholder value in any given situation” even in the face of laying off staff, cancelling promising game projects, and selling off well-established studios.

Going forward, the company aims to be much leaner, with fewer projects in development, and a significantly reduced workforce. As always, our thoughts are with the people impacted by these ongoing structural changes.

Leah J. Williams is a gaming and entertainment journalist who's spent years writing about the games industry, her love for The Sims 2 on Nintendo DS and every piece of weird history she knows. You can find her tweeting @legenette most days.