Saints Row Owner Embracer Is Laying Off Staff To Save Costs
thegamer.comEmbracer has announced plans to close studios and lay off staff amidst a new "comprehensive restructuring program". It wants to be a "leaner, stronger and a more focused, self-sufficient company" by making "cost savings". This is in spite of its spending $300 million on acquiring Crystal Dynamics, Eidos Montreal, and Square Enix Montreal last year, and $1.3 billion on Gearbox in 2021.
As reported by Eurogamer, the first phase of the plan will last until March 2024. It's unclear how many of the 17,000 staff will be laid off, what projects will be cancelled, and what studios shuttered. Embracer simply said that "It is too early to give an exact forecast on this."
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A third acquisition was in the works earlier this year, with Embracer set to spend $2 billion. CEO Lars Wingefors told investors, "We asked for the execution of the agreement before our Q4 announcement. However late last night we received a negative outcome from the counterparty." For comparison, PlayStation spent $3.6 billion on Bungie, Facebook spent $2 billion on Oculus VR, and Microsoft spent $2.5 billion on Mojang. Whoever it was, it would've been a big get for Embracer. However, after news broke that the deal with this mysterious partner had fallen apart, Embracer stock dropped by 40 percent.
While it's unclear what studios and projects will be impacted by these plans, one of its studios, Crystal Dynamics, put out a statement about its own future. "Thanks to everyone for reaching out and asking about the most recent news by our parent company Embracer Group regarding the restructuring plans," Crystal Dynamics tweeted. "We want to reassure fans that there will be no impact to our
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