Embracer Group has announced mass layoffs, studio closures, and game cancellations after a lengthy shopping spree within the games industry. Embracer, which has a penchant for acquisitions, has been struggling to release games that woo over critics and players.
Layoffs and game cancellations are ‘painful,’ says Embracer
In an open letter published by CEO Lars Wingefors, Embracer said that its restructuring program is necessary to deal with a “worsening economy and market reality” and will pivot the company from “heavy investment mode to a highly cash flow generative business.” The restructuring will last until at least March 2024, following which Embracer believes it’ll be able to generate profit from its console and PC segment in the coming years.
“It is painful to see talented team members leave,” Wingefors wrote. “I understand and respect that many of you will be worried about your own position and I don’t have all the answers to all questions.”
Embracer Group most notably acquired a number of IPs and studios from Square Enix, including Crystal Dynamics and Tomb Raider, and Eidos Montreal along with its Deus Ex franchise. The company has yet to reveal which projects it plans to cancel and which studios will be affected by the restructuring program.