Embracer Group Will be Shuttering Studios and Cancelling Projects as Part of a Restructuring Program

gamingbolt.com:

Embracer Group has seen a meteoric rise in the games industry over the last decade. The conglomerate owns a large number of development studios, thanks to what has been a never-ending string of acquisitions, and encompasses several major publishing labels, including the likes of Deep Silver, Saber Interactive, THQ Nordic, Gearbox, Crystal Dynamics, and many more. However, it has now announced that it’ll be going through a comprehensive restructuring program as it looks to become “a leaner, stronger and a more focused, self-sufficient company.”

In an open letter written by Embracer Group CEO Lars Wingefors, he says the restructuring program will “transform us from our current heavy-investment-mode to a highly cash-flow generative business this year.”

“It will enable us to meet the worsening economy and market reality as a strong company and it will fundamentally change our prioritization of growth with raised capital towards optimization and growth based on our own cashflows,” Wingefors writes. “The program will lower our net debt significantly. After completion of this program, we will generate growth in profitability with less business risk and with higher margins in the PC/Console segment over the coming years. This, in turn, will give us the freedom to continue to grow and deliver the high-quality experiences our players really value.”

Embracer Group’s restructuring program will be carried out over four separate phases between now and the end of the current fiscal year (March 2024), and will also include layoffs across the company.

“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 writes, and adds