Embracer Group announces layoff of 900 more employees following Q2 2023
These new layoffs continue to be part of Embracer's ongoing restructuring, which have already seen several studios closed or downsized.
This week, Embracer Group released its Q2 2023 earnings results, and with it, a new round of mass layoffs throughout its studios. The company has continued to do this throughout 2023 as part of restructuring after an absolutely massive $2 billion deal fell through. It also seems that, based on statements by CEO Lars Wingefors during the call, layoffs may continue as the restructuring continues throughout Embracer’s fiscal year.
Embracer Group shared its Q2 2023 earnings results and accompanying interim report video on its YouTube channel this week. Kicking off the presentation, Lars Wingefors began by immediately addressing the latest layoffs at Embracer:
Source: Volition
Many groups have laid off employees in the tech and games industry during 2023. It’s been a terrible year for that, but Embracer has had a particularly bad one after a $2 billion deal with Saudi-backed Savvy Gaming Group got away. Since then, the company announced plans to examine its portfolio and drastically restructure. That plan has since seen groups like Zen Studios (makers of Pinball FX) face layoffs, while groups like the Saints Row and Red Faction developer Volition were outright closed.
From Wingefor’s wording, it seems that closures and layoffs are not done at Embracer Group in its fiscal 2023 restructuring. Stay tuned as we continue to watch for updates to this story.
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replyTJ Denzer posted a new article, Embracer Group announces layoff of 900 more employees following Q2 2023
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Brutal.
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Still mad they shut Volition, one of my favorite studios. Then again, Embraced was their last lifeline.
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I am too, but it didn’t feel like the same studio anymore.
I really liked the Saint’s Row series, but the new one was technically atrocious. Terrible frame rate, pop in, weird shadows. It was borderline unplayable. And this was after a year of patches. The story seemed fine from what I’ve played, but the game itself wasn’t good. Red Faction Guerrilla remaster they did wasn’t great either. Seems weird that it was still 30fps.
They either didn’t get the talent, the time, and or the money to make good games anymore. Seemed like shadows of their former selves.
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Fuck multi-national industry consolidation.
This is the inevitable outcome of these solely profit-oriented acquisitions that are predicated on greed and control.
I'm sick of this shit and the avaricious executives who have caused all of this unnecessary suffering.
Across the industry, we have had a run of years for record profits. You can't tell me that no multi-billion dollar company saved for a rainy day? I keep on seeing excuses that high interest rates are the cause of these layoffs. If that's true, then: (1) the people who do business planning in the games industry are incompetent; and (2) if their projections have been based on historically low interest rates and pandemic projections, then they are incompetent.
IMHO, there is a great deal of "never let a crisis go to waste" happening here, and these multi-nationals are using the global economic situation to reduce labour power (mobility and wages). This is the games industry. A corrupt, venal, and uncaring sector that thrives on exploitation. -
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It should definitely be the CFO and anyone on the side of financing and investments, to go through with so much acquisition before the $2B thing was a sure deal (which might include the CEO and more)
I could see jumping ahead on an unclear $10-$100M deal, something they can cover in the margins, but no way $2b.
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What a bunch of pieces of shit at the head of this company
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