Home ยป Embracer Group’s CEO Relents: Mandatory Workforce Reductions, Studio Shutdowns, and Further Video Game Studio Divestitures

Embracer Group’s CEO Relents: Mandatory Workforce Reductions, Studio Shutdowns, and Further Video Game Studio Divestitures

Embracer Group, a Swedish gaming powerhouse, is currently facing financial difficulties, which have led to lay-offs, studio closures, and the potential sale of certain studios. It acknowledges that the company’s situation has not improved and further lay-offs and studio closures may be necessary.

During the annual ordinary shareholders’ meeting, Lars Wingefors, the CEO of Embracer, addressed questions and admitted that the decision to close studios was a challenging one, but necessary. The company is now planning to restructure and reduce staff in certain teams, and there may be additional studio closures. Wingefors is confident that these actions will be completed within the company’s current fiscal year.

Regarding the sale of some studios, Wingefors stated that there is interest from both major game companies and investment groups. Selling larger-sized studios will likely be easier compared to smaller ones.

Although Embracer has not disclosed specific plans for layoffs, closures, or studio sales, the company’s financial situation suggests that clarity may be achieved in the near future.

According to the numbers on the Embracer Group’s website, the conglomerate currently owns 139 studios, categorized into 12 operative groups, with a total workforce exceeding 16,500 individuals.

TLDR: Embracer Group, a Swedish gaming company, is experiencing financial challenges that have resulted in layoffs, studio closures, and potential studio sales. The CEO, Lars Wingefors, acknowledged the difficult decision to close studios and emphasized the company’s plans to restructure and downsize certain teams. While specific details are not yet available, the company’s financial situation suggests that further changes will be made. Embracer Group currently owns 139 studios across 12 operative groups and employs over 16,500 people.

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