Embracer Group has announced a comprehensive “restructuring” program that will take place immediately until the end of March 2024. Embracer’s restructuring program includes cancelation of games and closing studios that have low returns, leading to developers being laid off. The goal of this program is to cut costs by 10% on a yearly basis, due to the company’s debt.
The Key components of the restructuring program include:
- Matthew Karch appointed interim Chief Operating Officer, and Phil Rogers appointed interim Chief Strategy Officer, to co-lead the program planning and implementation
- Reduction of general overhead, corporate, publishing and SG&A costs
- The closing of studios and termination of projects, that have not yet been announced and with low projected returns
- Creation of a more comprehensive, centralized process for game investment and progress review, while maintaining creative freedom
- Consolidation of companies and businesses, including review of operative group structures
- Reduction of investments into external development with greater focus on internal development based on owned or controlled IP
- Increased external funding of internally developed, large-budget games
- Renewed focus on the Group’s main business areas
- Implementing a centralized and standardized, more data-driven and precise approach to game forecasting
Embracer hasn’t revealed what studios or games will be affected by its restructuring program. However, Crystal Dynamics has clarified via Twitter that they aren’t impacted by the restructuring program. The studio will continue co-developing Xbox exclusive, Perfect Dark with The Initiative while also working on the next entry to the Tomb Raider franchise with Amazon Games. Find the full announcement below:
Thanks to everyone for reaching out and asking about the most recent news by our parent company Embracer Group
regarding the restructuring plans.We want to reassure fans that there will be no impact to our continuing efforts with our partners at The Initiative on Perfect Dark, or our next Tomb Raider title being developed in collaboration with Amazon Games.
Lars Wingefors, CEO and co-founder of Embracer says that the restructuring program will help the company to realize untapped potential and better optimize its resources:
Today we announce a comprehensive restructuring program that will enable us to realize untapped potential in Embracer Group and better optimize the use of our resources. Across the group, we are now initiating multiple actions to strengthen our cash flow generation and leverage our portfolio of IPs to become a stronger company and setting out on a stable future to build even greater games to the benefit of gamers and fans across the globe.
We will let our readers know as soon as we learn more about this ongoing restructuring program and its affectees.
Source: Embracer Group AB