Embracer Group has confirmed around 900 staff have been laid off since it began its restructure program in mid-2023, with employees hailing from studios including Crystal Dynamics, Private Division, Take-Two, and Volition. In a Q2 2023-4 financial earnings presentation, Embracer CEO Lars Wingefors thanked these former employees for their contributions, while also confirming further layoffs are expected in the coming months.
“Before we get into the business details of our second quarter, I want to start this conference by saying a personal thank you to the 900 people who left Embracer during the second quarter,” Wingefors said. “As you will hear today, we are determined to transform Embracer into a leaner, stronger company.”
“That said, it’s painful to me that you need to leave the group, and we have been, and are doing, everything we can to preserve jobs without changing what we need to achieve. Our people are what make up the very fabric of Embracer. For me personally, it’s crucial that the programme is carried out with compassion, respect and integrity.”
But despite this devotion to “compassion, respect and integrity,” layoffs will continue at the company.
In its publicly released financial results, the restructure program was noted as being a primary method for improving overall company efficiency in future.
“Continued execution of the restructuring program will be key to improve efficiency, profitability and cash flows within the PC/Console Games segment,” the report says. “We are striving for a structure which enables us to look at the future and invest in the right games with the right teams. Post the restructuring program, we have increased confidence in our ability to deliver a general improved quality and ROI in the coming years ahead.”
Embracer Group’s Müge Bouillion, CFO of Asmodee and lead on the group’s restructuring program, also confirmed during the presentation that future “restructurings, closures [and] buyouts” are “in the process” and that this will lead to further layoffs in the coming quarters.
In addition, Bouillion confirmed around 15 “mainly unannounced” video game projects from studios including Gearbox, Plaion, Saber Interactive, and THQ Nordic had been written down and cancelled to cut costs.
We’re likely to hear much more from Embracer Group in the coming months as its ongoing restructure program continues.