2023 has been a turbulent year for Embracer Group, with a number of its many studios and projects having been affected by widespread layoffs and an internal restructuring initiative. Now, another studio under the company’s umbrella has been hit with significant layoffs.
As reported by VGC, German studio Fishlabs – the developer of 2021 space shooter Chorus – has let go around 50 of its employees, which is nearly half of its total workforce of around 120 employees (as per LinkedIn).
Plaion – the publishing label under which Fishlabs operates – says the layoffs are a result of “the lack of approval and therefore financing” for Project Black, an in-development and unannounced project. Going forward, Plaion says Fishlabs will continue to provide development assistance on other Plaion and Embracer projects, but there’s no word on whether the studio will have a project of its own in the works as well.
“Despite exhaustive efforts to avoid downsizing, the lack of approval and therefore financing for the studio’s unannounced project (also referred to as “Project Black”) has made this step unavoidable,” Plaion said in a statement confirming the layoffs. “The remaining team will continue to work on the existing co-development projects in partnership with other Plaion and Embracer Group studios.
“We understand the profound impact of this decision on our talented team at Fishlabs and are committed to handling this transition with the utmost respect and care. To support those affected, Plaion is committed to providing comprehensive support, including severance packages as well help with career transition services.”
Earlier this month, Embracer Group revealed that it had laid off around 900 people as part of its restructuring program, with more layoffs, project cancellations, and studio closures expected to follow. As part of the restructuring program, Saints Row and Red Faction developer Volition was shut down in August, while Tomb Raider developer Crystal Dynamics was hit with layoffs the following month.
TimeSplitters studio Free Radical Design is expected to be shuttered in the coming days, less than three years on from when it was re-established to revive the sci-fi shooter franchise. Meanwhile, Embracer Group is reportedly also looking for buyers for Borderlands developer Gearbox Entertainment.