Embracer has laid off 8 percent of its workforce as its restructuring program reaches “mature stages.”
The company released its latest financial report today, stating its net sales increased by 4 percent, although this is largely thanks to its Tabletop Games and Entertainment divisions. PC and console games net sales decreased by five percent.
In its third quarter, the company laid off 483 people, meaning 1,387 employees have now lost their jobs in the last two quarters, representing 8 percent of the total workforce.
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“In a group-wide effort, our companies and studios have had to make difficult decisions, particularly on having to part ways with team members,” said co-founder and CEO Lars Wingefors. “In total, we have reduced our global headcount by 8% of the workforce since the start of the program.”
Embracer still has “a few larger structured divestment processes ongoing” and its “overruling principle is to always maximize shareholder value in any given situation.”
Wingefors also admitted the company is unlikely to reach the restructuring programme's target of under SEK 8bn in net debt by the end of March, with room for further financial improvement in the PC and console segment.
Furthermore, Embracer has canceled 29 unannounced projects since April 2023. The report lists a drop in unannounced projects from 153 to 124, although a presentation alongside the report states a total of 22 projects were written off this financial year. It's unclear what happened to those remaining seven, which perhaps did not have finances attached.
Looking ahead, Embracer has a number of notable releases that will impact its next quarter, including Alone in the Dark, Tomb Raider 1-3 Remastered, Lightyear Frontier and more.
The Star Wars: Knights of the Old Republic remake remains on its list of announced games, despite troubled development.
Layoffs have dominated the news in recent months, particularly from Embracer as part of its restructuring program announced last June.
New World Interactive, Black Forest Games, and Eidos Montreal are among the most recently impacted, with a Deus Ex game canceled in the process.
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