As Embracer Group continues to reel and cut costs from a massive failed deal earlier this year, it would appear that Pinball FX developer Zen Studios is the latest group in its portfolio to face layoffs. Reportedly, Zen Studios was forced to cut around 32 developers from its staff. With Embracer Group having acquired the studio in 2020, this could be seen as part of Embracer’s continuing effort to recover from a failed $2 billion deal with Saudi Arabian government-backed Savvy Gaming.
Zen Studios’ layoffs were reported by Videogamelayoffs.com, which gathers data and shares job layoffs happening in the video game industry. Earlier this week, the website added Zen Studios to its list along with some details. Layoffs were apparently reported on October 13, 2023, and around 32 developers were supposedly let go. When asked for a statement by GamesIndustry.biz, a spokesperson for Embracer Group claimed the company could not comment on layoffs at Zen Studios.
Embacer Group instead reiterated previous statements about its restructuring program under which it has been cutting costs, laying off employees, and closing studios, including Saints Row developer Volition. It is unknown how much of Embracer’s portfolio the restructuring is expected to affect, but it seems to continue to hit established developers under the group’s umbrella. The company was also said to have been seeking outside funding to stave off further closures and layoffs.
Nonetheless, it looks like Zen Studios caught the axe this week. It remains to be seen what this means for the future of the Pinball FX studio. Stay tuned as we continue to follow for further updates.