Embracer Group has laid off 1400 people and canceled 29 different games in only the last six months during its restructuring effort. Read on to learn more about the details of its canceled projects and the layoffs that happened.
Embracer Group Layoffs and Cancellations Continue
This Isn't Even The End
Embracer Group’s layoff struggles continue as in the last 6 months, the company has confirmed the cancellation of up to 29 unannounced games and laid off around 1,400 people in the last half year as part of its restructuring effort. Video Games Chronicle (VGC) reports that Embracer’s project count went down from 153 to 124, 8% of its workforce or 1387 people were laid off, and is only working with 50 outside studios instead of 59.
This is not even the end as Embracer Group CEO Lars Wingefors explains in their quarterly report that while the restructuring is nearing completion, there are still "a few larger structure divestment processes ongoing."
"In a group-wide effort, our companies and studios have had to make difficult decisions, particularly on having to part ways with team members. In total, we have reduced our global headcount by 8% of the workforce since the start of the program."
Why and How Did This Happen?
To refresh your memory, Embracer Group had to push through with this restructuring plan due to a falling out with Savvy Games, a Saudi Arabian company, after months of negotiation. This restructuring effort has resulted in a number of studios being closed down such as Volition and Free Radical, the studios responsible for Saints Row and Timesplitters respectively.
To add to this, they have already canceled an unannounced Deus Ex game and laid people off in subsidiaries like Gearbox, Crystal Dynamics, and more. Wingefors explains that as a publicly traded company Embracer’s goal is to "always maximize shareholder value in any given situation," even if the end result is to cut staff, cancel games, and close studios.
For more information about the rest of the Embracer Group debacle, read our previous article on it below:
Sources:
Embracer Group - Q3 FY Report
VGC - Embracer cancelled 29 unannounced games between July and December
VGC - Embracer confirms it’s now laid off 1,400 employees and says more cuts could be coming
Gamespot - Embracer Cancellations
