It’s been a brutal year for the games industry with widespread layoffs having hit a number of developers and publishers over the last several months, and Embracer Group has been one of several companies that have been impacted. After failing to close a deal with Saudia Arabia’s Savvy Games Group worth $2 billion, the company started a restructuring program earlier in 2023, and that has resulted in a significant reduction in its total workforce.
As confirmed in Embracer Group’s recent quarterly fiscal report, CEO Lars Wingefors confirmed that as of September 30, as part of its restructuring program, the company has laid off around 900 people across all of its studios, which accounts for roughly 5% of its total workforce.
“As of September 30, 2023, the restructuring program contributed to Embracer’s first ever quarter-over-quarter reduction in headcount of around 900 people, or 5% of the workforce,” Wingefors wrote. “In this group-wide effort, we are not only discontinuing a number of studios, we have also made staff reductions and reduced the number of projects in several other studios, with a focus on improving the projected return on investment within PC/Console. 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. 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.”
Saints Row and Red Faction developer Volition was shut down by Embracer Group in August, while the following month, Tomb Raider developer Crystal Dynamics was hit with layoffs. Recently, it was reported that TimeSplitters studio Free Radical Design might be on the verge of being shuttered, just a little over two years after it was re-established, while it has been reported that Embracer Group is also looking to sell off Borderlands developer Gearbox Entertainment.
In September, Embracer Group confirmed that it would be closing “a few” more studios as part of its restructuring efforts.