Embracer confirms plans for layoffs in effort to become ‘leaner and more focused’

Embracer Group has been buying up a lot of studios and expensive IP in recent years, with the most recent addition being ownership over the Lord of the Rings IP. Unfortunately, the company had a rough financial quarter after a multi-billion dollar deal failed to materialise. Now, Embracer is looking to ‘restructure' and cut costs. 

Today, Embracer CEO, Lars Wingefors, confirmed that the company would be restructuring in an effort to become “leaner, stronger and more focused”. Part of this effort will include scrapping some in-development projects and doubling down on more promising IP. In the case of Crystal Dynamics, the studio has already come out to say that it does not expect any disruption in its development of Perfect Dark or Tomb Raider.

Embracer doesn't know exactly how many lay-offs will take place this year, but it will be shrinking its employee count down from roughly 17,000 before the end of the fiscal year.

We can also expect to see increased investment in The Lord of the Rings IP. Embracer already has a number of games in development, but the company will look to “exploit” the IP further in the years ahead.

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KitGuru Says: It sounds like Embracer will now be going through some major changes after spending the last few years focusing primarily on growth. Hopefully all those impacted can land on their feet at other studios. 

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