Embracer Layoffs Designed to 'Maximize Shareholder Value'
In a recent statement by CEO Lars Wingefors, it was revealed that Embracer Group plans to continue its «restructuring» model of cutbacks in order to prioritize shareholders above all else. Having just announced even more layoffs for Embracer Group, this latest statement by the CEO has left many fans in shock.
Founded in 2011, Embracer Group is a Swedish video game and media holding company that has recently gone through a number of financial woes. Since a multi-billion dollar deal for Embracer Group fell through, the company has laid off thousands of employees, shut down multiple development studios, and canceled numerous in-development games. Audiences were struggling to comprehend the reasoning behind these decisions, but this statement by Wingefors has provided a clear answer.
While many companies bear legal and financial obligations to satisfy investors, Embracer Group CEO Lars Wingefors was fully transparent about the company's prioritization of shareholders in its decision-making. As first reported by IGN, Wingefors noted in a prepared statement that Embracer will always work to maximize shareholder value. Embracer Group is headquartered in Karlstad, Sweden and is thus subject to Swedish corporate governance laws, which allot shareholders almost equal power to a corporate Board of Directors. As such, Embracer Group's Board and CEO may feel a stronger legal obligation to prioritize the wants and needs of its shareholders. However, fans have been reeling from the hundreds of staff layoffs at Embracer and the cancelation of almost 30 games during the second half of 2023, and this statement from Wingefors has already sparked outcry.
“Our overruling principle is to always maximize shareholder value in any given situation.”
— Lars Wingefors, CEO Embracer Group
People within the gaming industry have shown not only disappointment but anger towards Embracer's cutbacks, and these sentiments have been amplified following the shareholder comment from Wingefors. Some pointed
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