Embracer Group laid off 900 employees and canceled 15 games last quarter

Swedish gaming company Embracer Group laid off 904 employees last quarter, including more than 500 developers. The company announced this in the discussion of its quarterly figures. It has also written off fifteen ‘largely unannounced’ projects.

This concerns 5 percent of Embracer Group’s total workforce. In its quarterly report the company states that there will be more layoffs this financial year. The gaming giant hopes to significantly reduce its debt. It is currently in the red by around 1.3 billion euros, and Embracer hopes that it can reduce its debt to less than one million euros before the end of the financial year. Furthermore, a total of fifteen game projects were canceled in the past quarter at the studios Amplifier, Freemode, Gearbox, Plaion, Saber and THQ Nordic.

Compared to the same quarter last year, the publisher reports an increase of 13 percent in net turnover, equivalent to 942,333 euros. The company credits the success of games such as Dead Island 2, Remnant II and the console version of Teardown to what it says is ‘one of our strongest quarters in terms of new releases ever’.

Embracer Group bought a lot of game studios a few years ago, including Tomb Raider developer Crystal Dynamics, but suffered a major financial blow in early 2023. CEO Lars Wingefors revealed that a $2 billion deal fell through at the last minute. Reportedly it concerns a deal with Savvy Games Group, an investment fund from Saudi Arabia.

The company recently closed down a lot of previously purchased studios. Earlier this year, Embracer closed Saints Row studio Volition and Studio Onoma, known for games such as Lara Croft Go and Hitman Go. Video Game Chronicle wrote a week ago that TimeSplitters studio Free Radical is also in danger of being closed. Embracer Group is also reportedly trying to sell Borderlands studio Gearbox.