Embracer Has Laid Off 900 Employees and Written Down 15 Projects - News
by William D'Angelo , posted on 03 December 2023 / 4,469 Views
Embracer Group in its latest earnings report has provided an updated on its restructuring that has resulted in layoffs and studio closures.
Embracer has confirmed around 900 employees have been laid off as part of the restructure, which is five percent of the total workforce. The company has also written down 15 projects from Gearbox, Plaion, Saber Interactive, THQ Nordic, Amplifie and Freemode. These are mainly unannounced titles.
The company has been able to reduce its net debt to $1.4 billion for the quarter ending September 30, 2023, which is a 31 percent improvement on where it was a year ago.
The goal is to reduce capital expenditure by at least $275 million by the beginning of the next fiscal year on March 31, 2024 and reducing overhead costs by 10 percent or $76 million. Net debt is expected to be reduced to $757 million by the end of the current fiscal year.
"Before we get into the business details of our second quarter, I want to start this conference by saying a personal thank you to the 900 who left Embracer during the second quarter," said Emnracer co-founder and CEO Lars Wingefors.
"As you will hear today, we are determined to transform Embracer into a leaner, stronger company. That said, it's painful to me that you need to leave the group, and we have been, and are doing, everything we can to preserve jobs without changing what we need to achieve.
"Our people are what make up the very fabric of Embracer. For me personally, it's crucial that the program is carried out with compassion, respect and integrity."
Layoffs have been confirmed at Crystal Dynamics, Gearbox Publishing and Beamdog. Campfire Cabal and Saints Row developer Volition Games have closed down.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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Big acquisition followed up by big lay offs sheesh
its how the gaming industry works bro
What was the point of all those acquisitions Embracer Group did a year or two ago? It seems like one big shady scheme. If it was to make Embracer a prime target for a larger acquisition, give it enough time and other companies will be able to pick up those properties for a song. Square Enix could actually buy back Tomb Raider for less than they paid for it, with the way this is going.
Embracer made all those acquisitions with a I believe 1.7 billion dollar deal that ended up falling through at the last minute.
That is truly massive. Hope these people find a new job quick.
This year would be ideal to open new studios instead of M&A, so much free talent in the industry.
that is how it is. game company makes game lays off workers hires new workers the cycle repeates etc
Truly a gift to the industry
It seems like a lot but it's okay 5% off the workforce, which means this company pays neatly 20000 breadwinners.
Seems like an okay thing if the many will benefit from more guaranteed success. They seem to know what they're doing, they are reducing their debt, that's the first thing they have to do. Couch warriors will see these numbers and panic, but these are businesses not charities, their primary responsibility is to be solvent.
