Embracer Completes Restructuring; 4500 Devs Laid Off & 80 Games Cancelled

See full bio

Abdullah Waseem

At T4G, my task is to cover the latest news around the gaming globe ASAP and with the utmost precision. I adore all the games and respect all the devs behind the amazing games that we get all year. So, whether it’s a PC or a Console game, I got it all covered. 

See full bio

Embracer Group hasn’t been doing well in the last few years. They’ve had problems with game releases, studio closures, and more. Amidst all the chaos, they announced plans to go through some major restructuring, which seems to be finalized now. 

Why it matters: Although the gaming giant’s acquisitions were promising initially, they couldn’t stand the test of time. The company couldn’t sustain the business model with increased budgets and inflation. 

In the last 12 months, they have made tons of changes, which include layoffs, cancellation of multiple projects, and closure of many studios. They even announced their plans to move away from acquisitions.

To be precise, the workforce has been reduced by 4,532 people since last year. Embracer Group has also closed or divested over 40 internal and external studios and reduced the total projects under consideration by 80.

Of the studios sold, the biggest names are undoubtedly Gearbox and Saber Interactive. The studios were behind Borderlands and World War Z, respectively, so the sale of these studios, in addition to the layoffs of employees, put a huge dent in the business. 

Considering how brutal the changes proved to be for all the developers, Embracer Group will likely be glad it is finally over.

Interestingly, the studio still has major ambitions. According to its latest financials, it plans to release as many as 70 games by next year. Among these, it states three are very important projects, likely related to IPs on par with Tomb Raider. Hopefully, this is the end of this publisher’s historical layoff spree.

Abdullah Waseem

News Reporter

Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.