Embracer exec says laying off hundreds of people was an 'agonising process,' but that restructuring is 'how we win'

pcgamer.com:

Layoffs have been one of the defining events of the games industry this year, with thousands of jobs being cut across dozens of companies, all attempting to slash costs as the rapid economic growth of the pandemic years comes screeching to a halt. No company is more emblematic of both these extremes than Embracer Group. In the last few years, Embracer has embarked upon a frenzied spending spree, snapping up studios like Gearbox, Crystal Dynamics Eidos Montreal, and many more, all apparently to stack the decks in a deal with an unknown partner worth at least $2 billion.

But that deal fell through, saddling Embracer with $1.5 billion in debt. Immediately, Embracer began a ruthless effort to start climbing out of the red. The company laid off 904 people between July and the end of September, which included closing Volition, the developer of Saints Row. An unspecified number have also been laid off since, and those won't be the last either.

In the midst of all this, Embracer's interim chief strategy officer Phil Rogers has spoken to Gamesindustry.biz about the company's attempts to reduce its debt, and the resulting restructuring program. Safe to say, it makes for interesting reading.

On the debt itself, which Embracer has reduced from $1.5bn to $1.4bn, Rogers says Embracer feels «like we're on track against our targets that we've set out.» He specifies the plan is to «readjust that games pipeline down to the run rate» of «SEK 5 billion ($478.4million)» going into next fiscal year. In addition to reducing the debt, Rogers says Embracer is asking itself broader questions about how to «transform ourselves into a leaner, stronger, more focused and—critically—cash self-sufficient company».

As for the people who have lost their