A giant gaming company fires 900 employees, even after good results

Agglomeration He embraces, a group that owns several game development and distribution studios, confirmed the dismissal of hundreds of employees in an official statement. During the company’s financial results report for this quarter, the company claims this He “reduced the number of employees.” Which affected 900 peopleThis is a number equivalent to laying off 5% of its workforce.

In addition to demobilization, empress It reduced the number of ongoing projects at its studios and shut down developers entirely. Some of these measures that form part of the group’s restructuring were already known, but the approximate number of cuts has not yet been confirmed.

“It is never easy to cut ties with talented individuals. I’d like to go on record here as a special thank you to the people who left Embracer this quarter. These decisions are difficult and we do not make them lightly. “Personally, it is important to me that this process is conducted with empathy, respect and integrity,” says Lars Wingfors, CEO of Embracer.

Additional effects and changes in Embracer

However, the layoffs implemented this quarter, It occurs during the period when Embracer is recording positive results on its balance sheet For the quarter ending September 2023.

According to the report, the group as a whole showed a 13% growth in sales compared to the same period last year. Furthermore, although PC and console division sales were down 5%, this was still “one of the best quarters in terms of new releases” for the company.

Saints Row’s Volition was one of the studios affected by the new plans.source: steam

According to the CEO, games developed internally by Embracer generated twice as much revenue as games manufactured externally, indicating that this is the path the company will follow from now on.

Among the recent changes to Embracer is the closure of Volition, Saints rowThere are rumors of the sale of Gearbox Studio, in addition to the layoffs that affected Crystal Dynamics, the company responsible for the last trilogy Tomb rider It was acquired last year in a “bundle” from Square Enix.

Furthermore, Deadelic Entertainment, which had outsourced Lord of the Ring: Gollum development to the group, also closed its doors following the title’s poor reception.

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