Embracer Group Dismissed More Than 4,500 Employees and Canceled 80 Games Within One Year
Embracer Group finally completed the reductions. They were exceptionally far-reaching. More than forty development studios were gotten rid of and more than five thousand people were laid off.
The industry has faced an extremely challenging period in the last few months, primarily because of widespread layoffs. The Embracer group was at the forefront of this, compelled to take such actions because of significant financial issues. Its management announced in the latest report that the entire process ended on March 31 this year and the company has no plans for major layoffs in the near future.
The scale of the cuts is huge. From April 1, 2023 to March 31, 2024:
- the employment number dropped by 4532 people, with around 3000 employees departing the group in connection with the Saber Interactive transaction;
- 44 development studios were terminated by closing them down or selling them to other companies;
- the number of games in production was reduced by 80.
It's worth mentioning that among the recently sold studios is the Shiver Entertainment team, which was acquired by Nintendo. This is a highly practical purchase for the Japanese company, as the studio has expertise in adapting demanding games for the Nintendo Switch. Shiver Entertainment was responsible for the successful conversion of Hogwarts Legacy to this console.
Embracer's future plans
Despite having over 10,000 employees, the Embracer Group is still large, so the plans for the future remain ambitious. By March 31, 2025, all entities within it will release over 70 games on the market.
- The corporation has high hopes for Kingdom Come: Deliverance 2 and Killing Floor 3, expecting them to achieve success comparable to last year's Dead Island 2 (you can read more about it here).
- At least three other major Embracer projects are set to be released by March 31, 2025, in addition to the previously mentioned Kingdom Come: Deliverance 2 and Killing Floor 3.
Embracer's management, which has recently undergone several significant changes, believes that the group has the potential to boost revenues in almost every gaming sector, including consoles, PCs, mobile devices, and tabletop/board games. The company views these final two categories as significantly more foreseeable in this regard. In turn, high-budget productions for PC and consoles, although more risky, offer a greater chance for significant growth.
Compared to 2022, the Embracer group generated a 12% increase in revenues, but at the same time recorded a significant loss (financial details and specific numbers can be found in the company's report). The company said it was new Alone in the Dark and Outcast: A New Beginning recorded weaker results than expected, despite positive reception from players. In turn, Tomb Raider I-III Remastered achieved results above the board's expectations, and the remaining releases from the first three months of the 2024 calendar year mostly met expectations.
