{"id":38860,"date":"2023-11-16T15:00:06","date_gmt":"2023-11-16T15:00:06","guid":{"rendered":"https:\/\/www.xtremeservers.com\/blog\/embattled-embracer-group-confirms-more-than-900-staff-laid-off-so-far-and-warns-of-more-to-come\/"},"modified":"2023-11-16T15:00:06","modified_gmt":"2023-11-16T15:00:06","slug":"embattled-embracer-group-confirms-more-than-900-staff-laid-off-so-far-and-warns-of-more-to-come","status":"publish","type":"post","link":"https:\/\/www.xtremeservers.com\/blog\/embattled-embracer-group-confirms-more-than-900-staff-laid-off-so-far-and-warns-of-more-to-come\/","title":{"rendered":"Embattled Embracer Group Confirms More Than 900 Staff Laid Off So Far \u2014 and Warns of More to Come"},"content":{"rendered":"
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Embracer Group has said it has laid off 904 staff, or 5% of its workforce, since its financial struggles began following the collapse of a $2 billion deal, reportedly with Saudi government funded company Savvy Games Group<\/u><\/a>.<\/p>\n

<\/section>\n

The Swedish firm has come under fire for the sweeping cuts it has made so far in 2023, including the closure of long-running Saints Row maker Volition<\/a>. During a financial presentation, Embracer said its internal headcount was reduced by 713 people (511 developers and 202 non-developers), and its external developer headcount was reduced by 191. In total, 15 mostly unannounced projects were \u201cwritten down\u201d across Amplifier, Freemode, Gearbox, Plaion, Saber, and THQ Nordic, Embracer said.<\/p>\n

In a presentation to deliver Embracer’s Q2 financial report, CEO Lars Wingefors thanks all the staff he had let go. “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,\u201d he said.<\/p>\n

\u201cAs you will hear today, we are determined to transform Embracer into a leaner, stronger company. That said, it\u2019s 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.<\/p>\n

\u201cOur people are what make up the very fabric of Embracer. For me personally, it\u2019s crucial that the programme is carried out with compassion, respect and integrity.\u201d<\/p>\n

<\/section>\n

It\u2019s not going to stop there either. Embracer said ongoing restructuring, closures, or buy-outs are in process and \u201cwill lead to further headcount reductions\u201d. That means more layoffs are coming.<\/p>\n

Borderlands developer Gearbox is reportedly up for sale<\/a>, although IGN sources have said Embracer is struggling to find a buyer at its asking price. Embracer bought Gearbox in February 2021 as part of an acquisition spree that included snapping up Tomb Raider developer Crystal Dynamics, among many other studios.<\/p>\n

\u201cProcess involving possible consolidation of companies and businesses is ongoing, implementation expected to accelerate in [the fourth quarter of this financial year],\u201d Embracer said. \u201cOur restructuring program is making good progress, with opex savings ahead of plan and capex savings expected to contribute notably in the second half of the year,\u201d Wingefors added. \u201cWe continue to take important steps for the future and I am confident that we will emerge as a stronger company.\u201d<\/p>\n

We continue to take important steps for the future and I am confident that we will emerge as a stronger company.<\/section>\n

Wingefors’ comments will do little to reduce the stress and anxiety Embracer\u2019s hundreds of staff currently face going into the holiday season. Earlier this month, VGC<\/a> reported TimeSplitters developer Free Radical Design is at threat of being closed just two years after it was re-established. Publisher Plaion has yet to comment despite requests from IGN.<\/p>\n

Amid the chaos, some Embracer games have done well. Gunfire Games\u2019 looter-shooter soulslike Remnant 2<\/a> has now sold more than two million units and generated more than SEK 700 million (approx $66.2 million) in net sales. Dambuster Studios\u2019 Dead Island 2<\/a> was also a sales success.<\/p>\n

Looking ahead, Embracer expects to release a number of games over the course of the financial year, including Homeworld 3<\/a>, South Park: Snow Day!<\/a>, Arizona Sunshine 2<\/a>, Expeditions: A MudRunner Game<\/a>, Alone in the Dark<\/a>, Outcast \u2013 A New Beginning<\/a>, Lightyear Frontier<\/a>, and Deep Rock Galactic Survivors. Saber Interactive, which Embracer also owns, is working on Warhammer 40,000: Space Marine 2<\/a>. External publisher Focus Entertainment has yet to announce a release date.<\/p>\n

<\/section>\n

Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.<\/em><\/p>\n<\/section>\n<\/div>\n

Go to Source (IGN.com)<\/a><\/p>\n

All content and images belong to their respected owners. This article is aggregated for informational purposes only with full credit to the source.<\/p>\n","protected":false},"excerpt":{"rendered":"

Embracer Group has said it has laid off 904 staff, or 5% of its workforce, since its financial struggles began following the collapse of a $2 billion deal, reportedly with Saudi government funded company Savvy Games Group. The Swedish firm has come under fire for the sweeping cuts it has made so far in 2023,<\/p>\n","protected":false},"author":3,"featured_media":38861,"comment_status":"registered_only","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,6],"tags":[1183,2309,3798,1147,4258,552,904,1293,7001,11260],"class_list":["post-38860","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-releases","category-pc","tag-began","tag-embracer","tag-financial","tag-group","tag-laid","tag-said","tag-since","tag-staff","tag-struggles","tag-workforce"],"yoast_head":"\nEmbattled Embracer Group Confirms More Than 900 Staff Laid Off So Far \u2014 and Warns of More to Come | Xtreme Servers<\/title>\n<meta name=\"description\" content=\"View Embattled Embracer Group Confirms More Than 900 Staff Laid Off So Far \u2014 and Warns of More to Come for free, here on XtremeServers. Discover more great articles on our site. 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