Embracer hits Eidos Montreal with layoffs & reportedly cancels a Deus Ex game

As Embracer continues its cost-cutting efforts, Eidos Montreal is the latest to feel those cuts.

Image via Eidos Montreal

A couple years ago, Eidos Montreal joined Embracer Group alongside Crystal Dynamics and Square Enix Montreal, and it was rumored that Eidos Montreal had begun work on a new Deus Ex game following the deal. Unfortunately, the tides turned for Embracer since and that game may never see the light of day. It has been announced that that Eidos Montreal is the latest of the Embracer studios to face layoffs, and the Deus Ex game it was working on may have been canceled.

The layoffs and the Deus Ex game cancellation at Eidos Montreal were first reported via an article from Bloomberg, which claims to have spoken with sources familiar on the matter. According to the report, Embracer moved to cancel a Deus Ex game that hadn't been announced, but came up in rumors at the end of 2022. This apparently coincided with now-confirmed layoffs that saw a large group of employees cut from the company alongside the project. Eidos Montreal will instead be tasked with focusing its efforts on developing an original IP.

Deus Ex Mankind Divided keyart
It was rumored in late 2022 that Eidos Montreal was working on a new Deus Ex game that was allegedly canceled in recent Embracer Group layoffs.
Source: Eidos Montreal

Eidos Montreal, Crystal Dyanmics, and Square Enix Montreal were acquired by Embracer Group in May of 2022, after original owner Square Enix found its Western studios to be lacking in performance against executive expectations. It seemed like a chance for these studios to get a fresh start and prove themselves, but then Embracer shuttered Square Enix Montreal entirely. Things turned even more sour for Embracer when a $2 billion deal fell through, which has since forced the game publishing group to enter into its current cost-cutting phase to try to survive.

For its part, Eidos directly addressed the layoffs, revealing that, indeed, 97 employees had been let go from their positions in development, administrative, and support positions within the studio. The statement can be seen below:

Eidos Montreal statement on its layoff of 97 employees
According to Eidos Montreal, exactly 97 employees have been laid off from developmental, administrative, and support teams.
Source: Eidos Montreal

Eidos Montreal is hardly the first to face layoffs, even this year. The loss of a possible Deus Ex game stings as well, but hopefully those affected will find their footing elsewhere. Stay tuned as we continue to follow for the latest updates and news on this story.

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.

From The Chatty
Hello, Meet Lola