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Embracer Group, a Swedish video game company, laid off 904 workers, accounting for 5% of its workforce.

Embracer Group, a Swedish video game company, laid off 904 workers, accounting for 5% of its workforce.

The Embracer Group, a Swedish video game and media holding company, announced a workforce reduction of 904 employees over the last three months as part of its restructuring initiative. The company announced the news following the release of its most recent quarterly earnings report.

Despite a 13% year-on-year increase in net sales to SEK 1.8 billion ($170.5 million) in Q2, these job cuts account for approximately 5% of Embracer’s total workforce. Despite the fact that the most recent earnings report indicates a potential improvement in the situation, it is clear that the Group continues to face ongoing challenges.

Layoffs at Crystal Dynamics, Gearbox Publishing, and Beamdog studios resulted in the closure of Campfire Cabal and Volition Games. Staff reductions also occurred at Digic, Zen Studios, and Cryptic Studio.

The decision comes as the company faces a difficult year in 2023, particularly in the aftermath of a reported $2 billion deal with Saudi Arabia. It also aims to transform the company into a high-cash-flow-generating enterprise.

In June, the computer and console manufacturer announced a restructuring aimed at reducing the company’s SEK 16.7 billion ($1.51 million) debt. This included project cancellations, studio closures, and widespread layoffs throughout the organisation. Notably, some highly anticipated projects, such as the remake of Knights of the Old Republic, are now in doubt. Furthermore, media reports suggested that Gearbox Entertainment, the creator of Borderlands, might be sold.

The company acknowledged in an official media statement that it is a difficult process. It also stated that transition opportunities and open communication will be provided to those affected throughout the programme.

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