Embracer's M&A era is ending with job cuts and game cancellations

gamedeveloper.com:

Swedish conglomerate Embracer Group is making an unknown number of layoffs to move away from its "current heavy-investment-mode" and become a "highly cash-flow generative business."

The company has spent a huge amount of cash in recent years as part of an M&A strategy that has seen it acquire studios such as Crystal Dynamics, Deep Silver, THQ Nordic, Eidos Montreal, and Gearbox. Those moves have made it the owner of notable franchises like Borderlands, Deus Ex, Tomb Raider, Dead Island, and Metro.

Embracer Group CEO, Lars Wingefors, says the firm must become a "more focused, self-sufficient company" after spending so much time targeting rapid expansion.

As a result, layoffs are being made across the company. It's currently unclear who'll be affected by the cuts, with Wingefors simply explaining that Embracer's current staff count of 17,000 workers "will be lower by the end of the year."

"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," wrote the CEO in an open letter shared with investors.

"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 team members receive information first. Where we can, we will try to provide opportunities for our colleagues to transition onto other projects. It’s important to note that while we are removing roles in some companies, we will continue to hire in others."

The restructuring program will see Embracer close or