Nine hundred employees at Embracer Group have been let go in the second quarter, accounting for approximately five percent of the company’s workforce. The layoffs come as part of a restructuring effort that began earlier this year, starting with Gearbox, the developer behind the popular Borderlands series. Embracer Group had also faced financial setbacks, including the collapse of a major $2 billion deal with the Savvy Games Group.
The failed deal, which had been negotiated for seven months, was expected to be a significant strategic partnership for Embracer Group. However, it ultimately did not materialize, leading to financial concerns. Despite acquiring Gearbox for over $1 billion just a few years ago, Embracer Group is now reportedly looking to sell the company. Other studios under Embracer Group, such as Crystal Dynamics and Volition, have also faced difficulties.
The gaming industry as a whole has experienced a wave of layoffs this year, affecting numerous major publishers, developers, and holdings groups. These job cuts come at a time when profits in the industry are reaching record highs.
There is currently no update on the progress of the Gearbox sale or whether Embracer Group will be able to recover any of its investment. With its extensive portfolio of IPs and franchises, Embracer Group’s future appears uncertain as it navigates these challenging times.
| Studio | Game | Status |
|---|---|---|
| Gearbox | Borderlands | Layoffs reported |
| Crystal Dynamics | Tomb Raider | Collapsed completely |
| Volition | Saints Row | Collapsed completely |
| Various | Deus Ex, Duke Nukem, Legacy of Kain, and others | Under Embracer Group |
The gaming industry has been hit hard by layoffs this year, despite soaring profits. Embracer Group’s recent layoffs add to the growing list of companies affected. The failed $2 billion deal with the Savvy Games Group has further contributed to the company’s financial struggles. With the potential sale of Gearbox and the collapse of studios like Crystal Dynamics and Volition, Embracer Group faces uncertain times ahead.
Source: DOTESPORTS
