Embracer have laid off 8% of their global workforce since their "restructuring" began

rockpapershotgun.com:

Embracer have released their interim financial results for Q3, October-December 2023, in which they share details of the conglomerate's on-going efforts to "restructure" and reduce their massive debts, to the tune of hundreds of layoffs over the past year.

Amid the talk of revenues, profits and losses, we learn that Embracer have laid off 8% of their global workforce since announcing their restructuring program in June 2023. According to the report, Embracer's total headcount has fallen from 16,243 in the period October-December 2022 to 15,218 in the period October-December 2023. The number of Embracer studio game projects in development, meanwhile, has fallen from 224 to 179.

In comments following the figures, Embracer's CEO Lars Wingefors described Q3, October-December 2023 as "a stable quarter" and commented that Embracer are "tracking well" towards targets laid out in their June 2023 restructuring program announcement. Embracer are now approaching "the final stretch of the program, which is focused on both possible divestments, and consolidation." In other words, more studio reductions and closures might be in the offing.

"As part of the restructuring program, Embracer still has a few larger structured divestment processes ongoing that could strengthen our balance sheet and further reduce [capital expenditure]," Wingefors noted. "Processes are in mature stages."

It's possible that "restructuring" measures might happen before they're announced. "Certain companies might initiate restructuring before any divestment is announced," the CEO continued. "Our overruling principle is to always maximize shareholder value in any given situation." Embracer are "unlikely to reach the restructuring program target of below SEK 8 billion in net debt by March 31," Wingefors added; in other words, it will spill over into Embracer's next fiscal year. A little more specifically, Wingefors said that "while we have seen solid delivery across three out of our four segments