Embracer Group has recently announced that they have laid off 900 employees, which accounts for approximately 5% of their total workforce of 15,000 individuals, as part of their previously declared corporate restructuring plan. The company’s condition has been deteriorating since mid-year, leading to the closure of certain studios and the downsizing of their workforce.
CEO Lars Wingefors expressed his gratitude to the employees who were affected by the layoffs, acknowledging that this is a painful process. Nevertheless, the company is committed to making efforts to strengthen their corporate structure.
In the third quarter of 2023, Embracer Group’s overall business performance showed a 13% increase in sales. This growth was primarily driven by their board game business, which saw a 25% surge after the acquisition of Asmodee in 2021. Furthermore, their entertainment and service business experienced an impressive 76% growth. However, their PC and console gaming business saw a slight decline of 5%. Overall, the company reported an operating loss of -836 million Swedish Krona (SEK), representing -8% of their revenue, before interest and taxes (EBIT).
In summary, Embracer Group has recently undergone a workforce reduction, part of their strategic restructuring plan. Despite this challenging phase, the company remains dedicated to strengthening their operations. Their latest financial report showcases significant growth in the board game, entertainment, and service sectors. However, the PC and console gaming segment experienced a slight decline. These figures highlight the company’s ongoing efforts to revitalize their business.
TL;DR: Embracer Group has laid off 900 employees, comprising approximately 5% of their workforce, as part of their corporate restructuring plan. Despite this setback, the company’s third-quarter results show an overall increase in sales, driven by their board game, entertainment, and service businesses. The PC and console gaming segment experienced a slight decline. Embracer Group remains committed to rebuilding and strengthening its operations.