Embracer Group Announces Restructuring Program; Crystal Dynamics Says It’s Not Affected
Today, the Embracer Group announced a company-wide restructuring program that will take place over the remainder of the fiscal year (due to close in March 2024).
Its main goal is reducing overhead costs by at least 10% on a yearly basis and considerably decreasing the company's net debt. That should bring the company in a position to grow in profitability, increase margins, and reduce risks.
Unfortunately, that will come at a high cost for some internal studios and their employees. The aforementioned goals will be reached by closing or divesting some of the studios and pausing or canceling select game projects. Embracer Group CEO Lars Wingefors said this will mostly affect unannounced projects, of which the company had a lot (there were 200 games in the pipeline as of the last earnings call, many of them still unannounced).
The restructuring program also includes the consolidation of Embracer Group's companies and businesses, including a review of the twelve operating groups (Amplifier Game Invest, Asmodee, CDE Entertainment, Coffee Stain Holding, Dark Horse Media, DECA Games, Easybrain, Embracer Freemode, Gearbox Entertainment, Plaion, Saber Interactive, and THQ Nordic).
Additionally, a greater focus will be placed on internal development based on owned intellectual properties, while external development will go on the back burner. The Embracer Group also counts on increasing the external development of internally developed triple-A games, likely hinting at potential deals with platform holders. A centralized progress to green light game investment and check on their progress will be created.
To implement all these changes, Matthew Karch has been appointed interim Chief Operating Officer (COO). Karch was a board member of
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