Report: Embracer layoffs impact staff at MX vs ATV developer Rainbow Studios
Embracer Group's ongoing restructuring efforts have seemingly resulted in layoffs at MX vs ATV Legends developer Rainbow Studios.
Linkedin posts from multiple former Rainbow employees indicate the Phoenix-based studio has been downsized as Embracer attempts to steady the ship after declaring its M&A era is officially over.
Back in June, the free-spending Swedish conglomerate announced it would be making an unknown number of layoffs, shuttering studios, and scrapping a number of projects in order to become a "highly cash-flow generative business."
It seems a number of Rainbow Studios employees across a variety of disciplines have been impacted by that decision. Writing on Linkedin, former Rainbow QA analyst Austin Herrington said the studio has "been affected by the Embracer Group restructuring," resulting in them being laid off.
"This is a profoundly sad moment for the industry, and for me personally as I leave a studio I love," they wrote. "While I had hoped to stay at Rainbow for much longer, I’m proud of the studio and of everything we accomplished. Nobody wanted this to happen, and I can’t say enough about how well we were treated on our way out."
Other posts corroborated the news, with former Rainbow lead technical artist Thomas Tobin, artist Molly Cuddihy, and level designer Zac Bogner all explaining they were laid off by Embracer.
During an investor Q&A in August, Embracer CEO Lars Wingefors confirmed studios closures and layoffs were ongoing, and said the company was taking action behind closed doors as it attempts to hit a net debt target of SEK 8 billion by the end of the fiscal year.
As a result, studios such as Campfire Cabal and Volition have already been shuttered, while there were also reports of layoffs at
Read more on gamedeveloper.com
