{"id":43752,"date":"2024-02-15T12:21:51","date_gmt":"2024-02-15T12:21:51","guid":{"rendered":"https:\/\/www.xtremeservers.com\/blog\/embracer-warns-of-more-layoffs-despite-already-letting-go-1387-staff\/"},"modified":"2024-02-15T12:21:51","modified_gmt":"2024-02-15T12:21:51","slug":"embracer-warns-of-more-layoffs-despite-already-letting-go-1387-staff","status":"publish","type":"post","link":"https:\/\/www.xtremeservers.com\/blog\/embracer-warns-of-more-layoffs-despite-already-letting-go-1387-staff\/","title":{"rendered":"Embracer Warns of More Layoffs Despite Already Letting Go 1,387 Staff"},"content":{"rendered":"
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Embattled entertainment company Embracer has warned of further layoffs despite letting go of 1,387 staff since its high-profile restructuring began in June.<\/p>\n

<\/section>\n

Embracer\u2019s total headcount was reduced by 904 during the second quarter of its financial year, then by another 483 in the third quarter. That\u2019s 8% of the group’s global workforce.<\/p>\n

\u201cIn a group-wide effort, our companies and studios have had to make difficult decisions, particularly on having to part ways with team members,\u201d Embracer CEO Lars Wingefors said in a prepared statement. \u201cIn total, we have reduced our global headcount by 8% of the workforce since the start of the program. The reductions are managed locally on the operative group level with a focus on informing affected employees first, and then carried out with compassion, respect and integrity towards those affected.\u201d<\/p>\n

Wingefors went on to say Embracer is in the process of selling off parts of its business, amid rumours Borderlands developer Gearbox is up for sale<\/a>. 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. \u201cProcesses are in mature stages,\u201d Wingefors said, before warning layoffs at Embracer\u2019s various studios may occur before any sale is completed. \u201cCertain companies might initiate restructuring before any divestment is announced,\u201d he said.<\/p>\n

Our overruling principle is to always maximize shareholder value in any given situation.<\/section>\n

And then, in a comment already causing controversy within the video game industry across social media, Wingefors said Embracer\u2019s priority is to its shareholders \u2014 always. \u201cOur overruling principle is to always maximize shareholder value in any given situation,\u201d Wingefors said. To be clear, all publicly traded companies have a legal obligation to their shareholders, but saying this out loud in this way and in the context of the drastic impact the cuts are having on people’s lives has raised eyebrows.<\/p>\n

Despite the ongoing restructure, Wingefors admitted Embracer is \u201cunlikely\u201d to hit its target of reducing net debt to below SEK 8 billion ($762 million) by the end of its financial year. But he said \u201ccertain divestments\u201d could \u201csignificantly\u201d reduce net debt post March 31, 2024.<\/p>\n

Embracer Group\u2019s financial struggles began following the collapse of a $2 billion deal, reportedly with Saudi government funded company Savvy Games Group<\/u><\/a>. The Swedish firm has since come under fire for the sweeping cuts it has already made, including the closure of long-running Saints Row maker Volition<\/u><\/a>.<\/p>\n

<\/section>\n

Last month it emerged Embracer had canceled a new Deus Ex game<\/a> that was two years in development and laid off 97 staff at developer Eidos Montreal. According to Bloomberg<\/u><\/a>, the unannounced third mainline entry in the Deus Ex series was supposed to enter production later this year. However, developer Eidos Montreal will reportedly focus on an original franchise instead. “The global economic context, the challenges of our industry, and the comprehensive restructuring announced by Embracer have finally impacted our studio,” said the studio. Elsewhere across Embracer, there were layoffs at Black Forest Games, Lost Boys Interactive, and Nimble Giant Entertainment.
Amid all this, Wingefors said some of the games it released during the third quarter of its financial year hadn\u2019t met expectations, but revealed the recently released Deep Rock Galactic: Survivor<\/a> is \u201coff to a really strong start.\u201d Tomb Raider 1-3 Remastered<\/a>, which also launched this week, \u201cis also off to a very strong start, both in terms of critic and a sales performance.\u201d Sci-fi RTS Homeworld 3<\/a> was delayed to May.<\/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":"

Embattled entertainment company Embracer has warned of further layoffs despite letting go of 1,387 staff since its high-profile restructuring began in June. Embracer\u2019s total headcount was reduced by 904 during the second quarter of its financial year, then by another 483 in the third quarter. That\u2019s 8% of the group’s global workforce. \u201cIn a group-wide<\/p>\n","protected":false},"author":3,"featured_media":43753,"comment_status":"registered_only","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,35],"tags":[12789,946,822,5151,2309,1066,1489,4075,5699,2658],"class_list":["post-43752","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-releases","category-ps4","tag-12789","tag-company","tag-despite","tag-embattled","tag-embracer","tag-entertainment","tag-further","tag-layoffs","tag-letting","tag-warned"],"yoast_head":"\nEmbracer Warns of More Layoffs Despite Already Letting Go 1,387 Staff | Xtreme Servers<\/title>\n<meta name=\"description\" content=\"View Embracer Warns of More Layoffs Despite Already Letting Go 1,387 Staff for free, here on XtremeServers. Discover more great articles on our site. 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