In the aftermath of Embracer Group failing to close a deal with Savvy Group worth $2 billion earlier this year, the company has suffered some financial setbacks. In June, it revealed that it was instituting a restructuring program that would entail layoffs, studio closures, and upcoming projects being cancelled.
Plenty of that has happened already in the last couple of months, from Saints Row and Red Faction developer Volition being shuttered to several studios owned by the company being hit by layoffs (including, most recently, Crystal Dynamics). Unfortunately, however, Embracer Group says it’s expecting more cutbacks in the coming months.
During a recent Q&A at the company’s annual general meeting, CEO Lars Wingefors said that he’s still expecting “a few cases of closures”, but that the company is confident it’ll hit its targets for the current fiscal year, which ends on March 31 next year.
“Ultimately we are making decisions to either restructure or downsize some teams, and there will be a few cases of closures,” he said (via Game Developer). “It’s difficult and it takes time, but we announced this in June and now we’re at the end of September and we’re confident to deliver on the targets we set out for the end of the fiscal year.”
Interestingly, Wingefors has also suggested that the company remains open to selling off some of its studios as part of its restructuring efforts, and that any such efforts would likely be more focused on “high-value assets”.
“On the divestment side, there is a strong vibrant market with many, many active players–both financial sponsors and big industry players,” he said. “It’s easier to run proper processes for more high-value assets than smaller assets, and I think that’s what we have experienced now as well.”
Recent reports have claimed that Embracer Group is considering potential sale of Borderlands developer Gearbox Entertainment.