Without a doubt, 2023 will remain a dark year in terms of jobs in the video game industry. After Microsoft, Electronic Arts or more recently Team17 and many others, Embracer Group has recently revealed the unflattering figures of its previously announced restructuring plan.
A restructuring carried out reluctantly
Even if the company was reassuring in discussing the future of the next Tomb Raider, the parent company of Crystal Dynamics has been going through a difficult period in recent months. In fact, the fault lies with the failure of an agreement not concluded with Savvy Games Group (Saudi Arabian company) whose value was estimated at 2 billion dollars.
Embracer Group’s recent quarterly fiscal report, disclosed by CEO Lars Wingefors, confirms as of September 30 that the restructuring plan has led to the dismissal of approximately 900 employees across all of its studios, representing approximately 5% of its total workforce.
As of September 30, 2023, the restructuring plan contributed to Embracer’s first-ever quarter-over-quarter workforce reduction of approximately 900 people, or 5% of the workforce. As part of this group-wide effort, we are not only abandoning a number of studios, we have also made staff reductions and reduced the number of projects at several other studios, putting the emphasis on improving the expected return on investment within PC/Console.
It is never easy to part with talented people. I would like to give a special thanks to those who left Embracer during the quarter. These are difficult decisions and we do not take them lightly. For me, personally, it is essential that the process is conducted with compassion, respect and integrity.
As a reminder of previous events, Volition (developer of Saints Row and Red Faction) closed its doors in August. Recently, rumors also indicate that the TimeSplitters Free Radical Design studio could soon experience the same fate, a little more than two years after its reopening.
Note also that Embracer Group is reportedly looking to sell Gearbox Entertainment, developer of Borderlands.