Embracer Group’s Restructuring Results and Q3 Financial Summary
The Swedish holding company, Embracer Group, has summarized its third quarter results for the current fiscal year, revealing the interim outcomes of a broad restructuring process initiated last summer.
In the last quarter of 2023, Embracer Group laid off an additional 483 employees, which brought the total number of job cuts during the restructuring to 1,387, representing 8% of the total workforce.
From July to December, Embracer canceled 29 unannounced games—possibly including a new Deus Ex—leaving 124 unannounced projects in holding company studios’ pipelines out of a total of 179.
Besides, Embracer closed seven internal studios—including Volition (known for the Saints Row series) and Free Radical Design (TimeSplitters)—and discontinued partnerships with nine external teams, leaving 132 studios internally and 50 externally.
According to Lars Wingefors, the CEO of the Embracer Group, the restructuring is entering its final stages. However, more reductions are expected as the company plans to divest a large number of assets.
“Under the restructuring, Embracer plans several significant asset reduction processes that will help strengthen our balance sheet and further reduce capital expenditures,” Wingefors announced.
As a reminder, Embracer initiated the restructuring following a last-minute collapse of a $2 billion deal. The prospective partner, likely the Saudi Savvy Games Group, ultimately declined to move forward with the holding company.
