May 22, 2024

Embracer wants to make its shareholders happy: 29 projects have been canceled and 8% of the workforce laid off

Since April 2023, Embracer Group has canceled 29 gaming projects and laid off 8 percent of the workforce.

The reason for this is to save costs and it seems they are not done with that yet.

What is the current situation?

Recently, net sales for the entire company rose four percent, but that was due to Embracer's board games and entertainment division. PC and console game sales fell five percent.

Since the cost-cutting measures began, a total of 1,387 employees have been laid off, representing approximately 8 percent of the total workforce.

The current annual report indicates 124 unannounced projects instead of the previous 153, so it appears that 29 titles have been discontinued.

“Our companies and studios have had to make difficult decisions across the group, especially when it comes to separation from team members,” says co-founder and CEO Lars Wingfors. “In total, we have reduced our global workforce by 8% since the program began.”

“Some large-scale organized sales are still ongoing.” According to Wingfors, the “most important principle” is “maximizing shareholder value in every situation.”

However, it seems that the desired restructuring target cannot be achieved by the end of March 2024. There is still more potential for financial improvement in the PC and console sectors.

Studios such as New World Interactive, Black Forest Games and Eidos Montreal will be affected by the restructuring. In the context of this, a new Deus Ex is apparently set.