LogInLayoffs are an inevitable process that everyone "needs to get through."
Image credit: Eidos Montreal, Deus Ex: Mankind Divided
During a recent discussion with investors, Embracer CEO and Co-Founder Lars Wingefors talked about the restructuring program, which led to the downsizing of nearly 1,400 employees in less than a year and the cancellation of 43 games, and provided some updates on its progression. Wingefors highlighted the company's successful adjustments to prevailing economic conditions, stating that current decisions "set the foundation for the coming decade."
He pointed out that over the last year, Embracer has been moving away from large expansion initiatives and studio investments, resulting in reductions and the cancellation of numerous projects.
"Obviously, when you are expanding so much and you're taking business risk both setting up new studios, building new IPs, acquiring game developers that you are investing into, that [don't] necessarily [have] the track record. If you change that, you need to cut the things that has the highest, what you believe has the lowest chance of success going forward," Wingefors stated. "And that's what we are doing now, keeping the most iconic studios and IPs under development."
Wingefors also stated that Embracer aims to finalize the restructuring by March, but he believes ongoing adaptation and adjustments to the business will persist in some form.
Adding to that, Wingefors mentioned that downsizing in the industry is a result of the substantial investments made in recent years, and he's of the view that workforce reductions are an inevitable process that everyone will experience and "need to get through."
"We are adapting to a new reality. The Embracer model is being adjusted and improved, but our long-term vision is still unchanged. Challenging times are also learning times that will strengthen us into the future. I'm confident that the decisions we make today, set the foundation for the coming decade," he concluded.
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