Embracer Group has unveiled plans for a major restructuring program that is expected to lead to various studio closures.CEO Lars Wingefors said that “comprehensive” program is to “better optimise the use of [Embracer’s] resources.” Embracer Group plans to take “operational and financial measures to increase cash conversion, improve efficiency and reduce capex,” with the goal of reaching a financial net debt under SEK 10 billion by the end of the FY23/24.Furthermore, the company added that the restructuring actions will include “the closing of studios and termination of projects, that have not yet been announced and with low projected returns.”Wingefors commented:Embracer currently engages close to 17,000 people and while that number will be lower by the end of the year, it is too early to give an exact forecast on this.Embracer Group plans to reduce investment into external development in order to focus “on internal development based on owned or controlled IP,” while expecting “increased external funding of internally developed, large-budget games.”The company lists consolidation as part of its planned actions, in addition to “creation of a more compressive, centralised process for game investment and progress review, while maintaining creative freedom.”[Source – GamesIndustry.biz]
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