In a disappointing turn of events, Embracer Group THQQF has confirmed the layoff of 904 employees, constituting 5% of its workforce.
The aftermath includes the shutdown of Volition, the studio responsible for Saints Row, reported by IGN. Additionally, the company disclosed the axing of 15 undisclosed projects across multiple subsidiaries.
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CEO Lars Wingefors asserted the company’s drive to become more efficient while underlining the significance of conducting the process with compassion and integrity. It’s disheartening to hear that Embracer foresees additional layoffs due to ongoing reorganization and potential closures or acquisitions.
Despite these arduous trials, Embracer noted strides in cost-saving efforts and hinted at an upcoming consolidation process set to gain momentum soon.
Detailing the situation, Embracer stated in a financial presentation, “The process involving possible consolidation of companies and businesses is ongoing, with implementation expected to accelerate in [the fourth quarter of this financial year]. Our restructuring program is making good progress, with opex savings ahead of plan and capex savings expected to contribute notably in the second half of the year,” reaffirmed Wingefors.
Wingefors maintained an optimistic outlook, asserting, “We continue to take important steps for the future, and I am confident that we will emerge as a stronger company.”
However, this positivity may offer little solace to the remaining employees, especially as the holiday season approaches.
Concerns have been raised over the potential closure of TimeSplitters developer Free Radical Design, further unsettling Embracer’s staff. Amidst this turbulence, some of the company’s games, such as Remnant 2 and Dead Island 2, have seen substantial sales success.
Looking ahead, Embracer looks forward to releasing several games throughout the financial year, including titles like “Homeworld 3,” “South Park: Snow Day!,” and “Warhammer 40,000: Space Marine 2.”
Nonetheless, uncertainties loom over certain developments, with publisher Plaion yet to comment on reported issues despite requests.
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Image credits: Sergei Elagin on Shutterstock.