LogInEmbracer Group has announced a restructuring program, which will include the closure of multiple studios, the cancellation of undisclosed game projects, and various other measures.
Embracer Group has revealed plans for restructuring, which involves the closure of several studios and the cancellation of some undisclosed game projects.
The Swedish company announced the restructuring program today, less than a month after it released its latest financial report, which revealed that Embracer had lowered its financial expectations following a "challenging year" which encompassed several game delays and the cancellation of a potential $2 billion partnership with an undisclosed company.
Embracer CEO Lars Wingefors published a letter where he outlined the restructuring process that will be implemented in multiple stages, concluding by March 2024. According to him, the primary goal of restructuring is to transform the holding into "a highly cash-flow generative business", generating substantial cash flow while simultaneously reducing costs and debt.
With this objective in mind, Embracer Group will be implementing several measures as part of the restructuring plan including:
- the review process for investments, including the approval of game projects;
- the closure of multiple studios;
- the cancelation of some unannounced projects that were anticipated to have low profitability prospects;
- reduction of investments in projects from partner companies and focus on games developed by internal studios based on their IPs;
- increasing the frequency of securing investments from third-party companies for its internal projects.
The head of Embracer emphasized that there are currently no plans to cancel any games that have already been announced. The primary changes will instead focus on projects that have not yet been made public.
Wingefors apologized to all employees, acknowledging that the restructuring decisions, including studio closures and staff reductions, were difficult yet essential for the holding to navigate a financially demanding period. According to him, those affected by the layoffs will be notified in advance, and every effort will be made to explore alternative positions and facilitate transfers to other projects, wherever possible.
You can learn more by reading Lars Wingefors's letter here. Also, don't forget to join our 80 Level Talent platform and our Telegram channel, follow us on Instagram and Twitter, where we share breakdowns, the latest news, awesome artworks, and more.