Embracer Group announces plans to close some studios and cancel some game projects
Embracer Group has announced a new “restructuring program” which will see some game studios closed and some projects cancelled.
Shares in the companynosedived by over 40% last month after the Swedish company said a major $2 billion partnership had fallen through unexpectedly and wouldn’t be going ahead as planned, leading to a slashing of its earnings forecast.
Now, in an open letter posted on the company’s website, group CEO Lars Wingefors has stated that the newly announced restucturing program will be designed to make Embracer “leaner, stronger and a more focused, self-sufficient company”.
“During the past years, Embracer invested significantly both in acquisitions and into a strategy of accelerated organic growth,” Wingefors explained.
“We have acquired some of the world’s leading entertainment IP and we have invested into one of the largest pipelines of games across the industry. The program presented today will transform us from our current heavy-investment-mode to a highly cash-flow generative business this year.”
The new restructuring will result in job losses. “Embracer currently engages close to 17,000 people and while that number will be lower by the end of the year, it is too early to give an exact forecast on this,” Wingefors said.
“It is painful to see talented team members leave. Our people are what make up the very fabric of Embracer. I understand and respect that many of you will be worried about your own position and I don’t have all the answers to all questions. I want to be clear that the decisions about this program were not taken lightly.
“I am asking all our managers to lead and act with compassion, respect, and integrity. Throughout each phase and wherever possible, we will work to ensure that affected
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