Embracer Group CEO Lars Wingefors says the company will be restructuring, meaning layoffs, game cancellations and studio closures are on the horizon.
An undisclosed number of the company’s 17,000 employees will be let go and certain game projects will be paused or outright terminated, along with other efficiency and overhead-reduction efforts that will take place in phases between now and March 2024, Wingefors said Tuesday.
“I am asking all our managers to lead and act with compassion, respect, and integrity,” Wingefors wrote in the open letter, following the layoff announcement. “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.”
The letter also revealed that money-saving efforts around game project pauses and terminations will be primarily for unannounced titles and that anything Embracer’s already publicly revealed is likely safe.
Crystal Dynamics, which was recently acquired by Embracer Group, released a statement saying its upcoming “Tomb Raider” and “Perfect Dark” projects would not be affected by the restructuring.
Embracer also owns Eidos-Montréal and the “Deus Ex” series (which were acquired in the same purchase as Crystal Dynamics and “Tomb Raider”). The restructuring news could be frightening for fans who’ve heard nothing in any direction from Eidos-Montréal about the supposed “Deus Ex” game rumored to be in early development. While it makes sense there wouldn’t be reassurances for a game that hasn’t been officially announced, the timing of these events would give any gamer reason to be afraid for the fate of the studio and franchise.
A spokesperson for Embracer Group did not immediately respond to TheWrap’s request for comment.