Embracer Group AB THQQF has undergone a significant restructuring.
The Restructuring: The Swedish video game and media holding company recently reduced 8% of the global workforce, amounting to 1,387 employees since June. The reduction encompasses 904 job cuts in the second quarter and an additional 483 in the third.
Embracer is also in the process of selling parts of its business, potentially including Gearbox, which it acquired in 2021.
CEO Lars Wingefors, in a group-wide effort, remarked on the difficult decisions the company has had to make, particularly parting ways with team members. He emphasized that the reductions are being carried out with compassion, respect, and integrity towards the affected employees.
Wingefors mentioned that processes towards divestment are in a mature stage and warned of potential layoffs at Embracer’s studios before any sale is completed. He also controversially prioritized shareholder value, stating that their overruling principle is to always maximize shareholder value in any given situation.
The financial challenges faced by Embracer stem from the collapse of a $2 billion deal and past criticism for cuts, such as the closure of Volition, creator of Saints Row. Notable acquisitions in Embracer’s history include Darksiders, Red Faction, and the BioMutant IP.
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