Embracer Group confirms 900 employees were laid off in the last quarter, with more closures to come
Embracer Group has confirmed that as part of its ongoing restructuring plan, approximately 5% of its workforce was laid off in the last three months.
CEO Lars Wingefors confirmed in the company's most recent financial report (via VGC) that around 900 employees have been directly affected by layoffs across its subsidiaries, marking Embracer's "first-ever quarter-over-quarter reduction in headcount." "It's never easy to part ways with talented individuals. I would like to put on record a special thanks to the people who have left Embracer in the quarter,” Wingefors said. “These are difficult decisions and we do not take them lightly. For me, personally, it is crucial that the program is carried out with compassion, respect, and integrity."
The restructuring program was announced in June after a $2 billion deal with the Saudi-owned Savvy Gaming Group fell through, resulting in the closure of Saints Row developer Volition, Gearbox being put up for sale, and layoffs at Zen Studios, Crystal Dynamics, Cryptic Studios, and others. Last week, it was also claimed that TimeSplitters developer Free Radical Design may also close its doors.
Müge Bouillion, the program's finance workstream lead, stated that the company now has "15 mainly unannounced projects'' identified across subsidiaries Amplifier, Freemode, Gearbox, Plaion, Saber Interactive, and THQ Nordic, with more layoffs and closures on the way. “Since the end of Q2, in respect of due process and commercial sensitivity, we will not comment on the specifics, but further restructurings, closures, buyouts, are in process, and that will lead to additional headcount reductions,” said Bouilion.
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