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The company confirmed that 900 people were laid off, which is approximately 5% of its workforce.
Image credit: Starbreeze Studios, PAYDAY 3
Embracer Group has recently published its financial report for Q2, which covers July to September 2023. Despite facing challenges, the company remains confident that it will become stronger as a result of the restructuring, even though it had to lay off around 900 employees, which accounts for 5% of its workforce – a historic first for the company.
The report revealed that Embracer closed the quarter with a net loss of $53 million, a significant decline compared to the $225 million profit reported in the same period a year ago. However, the company experienced a 13% increase in net sales, which amounted to $1.02 billion for the quarter. The board games segment emerged as the highest-performing category, with sales reaching $385 million, a 25% year-on-year increase. Games for consoles and PCs generated $369.7 million in sales, though this marked a slight decline of 5%, while mobile game sales reached $139 million with a modest 2% growth.
Image credit: Gunfire Games, Remnant II
In terms of specific game releases, new games for PC and consoles achieved impressive quarterly sales of $132 million, marking one of the best indicators in the company's history. Notably, Remnant II, released on July 25, sold over 2 million copies and generated net sales exceeding $66 million. Embracer also managed to recoup its investment in PAYDAY 3 but expects lower earnings from the game than originally anticipated.
Overall, sales of games such as Jagged Alliance 3, RIDE 5, and The Lord of the Rings: Return to Moria met Embracer's expectations. However, Trine 5: A Clockwork Conspiracy fell short.
Despite the restructuring and staff reduction, Embracer remains resolute in its belief that it will emerge from this period stronger than ever, leveraging its successful game sales and strategic investments to continue its growth trajectory.
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