Within a year, Embracer laid off 4,500 employees and closed 80 projects

May 23, 2024 by No Comments

Since the early weeks of 2023, the gaming industry has been hit by the turbulence that is still raging in the global market. Tens of thousands of industry workers lost their jobs, old studios closed, and countless projects were canceled as developers, publishers, and other industry firms floundered, panicked, and desperately tried to recoup losses and appease investors.

The Embracer Group, which eventually became the ‘boogeyman of the business’, sits at the top of the table for these cuts and slashes. In a recent financial update, over the past year, Embracer has laid off more than 4,500 employees and closed 80 projects.

The Impact of It All

in A recent financial statement Published by the Embracer Group, the almost accidental revelation that nearly 4,500 employees were cut from the company’s books in the past year. That’s a whopping 27% of the global workforce, and it represents the vast changes the company has made since its launch in 2023.

The report confirmed that 80 projects were closed. From January to March 2023, 221 projects were underway, while from January to March 2024, only 141 were operational.

Despite the monumental downturn, Embracer reported a significant full-year increase in net sales — a total of 12%, to $3.94 billion in cash equivalents. From massive investments to shuttering studios — some of which have been in operation for decades — Embracer has tried everything possible to cut costs and regain finance after a multibillion-dollar deal with Saudi Arabia collapsed.

By all accounts from an internal perspective, Embracer Group’s transformation has been nothing but a good thing. This is a summary of what CEO Lars Wingfors said in the financial report:

Throughout the past year, our companies and studios have had to part ways with team members. These are necessary but difficult decisions, and it is important to manage change with compassion, respect and integrity for those affected. After the reorganization, we will seek to make continuous improvements as part of our normal business, further improving operational efficiency and capital allocation.

In April, it was revealed that the Embracer Group would be split into three separate companies:

  • Asmodee Group
  • Coffee Stein & Friends
  • Middle-earth Enterprises & Friends

The industry has suffered enough now that things have stabilized at Embracer and the global hope is that it will continue to do so.

For more Insider Gaming, check out the news about the Frogbyte bankruptcy and don’t forget to subscribe to the Insider Gaming newsletter.

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