For a while now, we've heard several reports and rumours about unfortunate closures at some of Embracer Group's development studios, and a new financial update from the gaming giant has laid bare the scale of these cutbacks.
In an official statement from the group, it's been confirmed that around 900 employees have been laid off across various studios - amounting to roughly 5% of its overall workforce. Embracer currently runs lots of dev teams across the globe, including Tomb Raider and Marvel's Avengers team Crystal Dynamics, Dead Island 2's Dambuster Studios and many more. Here's an important chunk of the team's statement:
"As of September 30, 2023, the restructuring program contributed to Embracer’s first ever quarter-over-quarter reduction in headcount of around 900 people, or 5 % of the workforce. In this group-wide effort, we are not only discontinuing a number of studios, we have also made staff reductions and reduced the number of projects in several other studios, with a focus on improving the projected return on investment within PC/Console.
It’s never easy to part ways with talented individuals. I would like to put on record a special thanks to the people who have left Embracer in the quarter. These are difficult decisions and we do not take them lightly. For me, personally, it is crucial that the program is carried out with compassion, respect, and integrity."
This has been an ongoing process throughout 2023, and we already had confirmation of some of the casualties earlier this year. Saints Row developer Volition was completely closed a few months ago after its undercooked reboot failed to deliver - the team itself confirmed the news on LinkedIn at the time.