Embracer Group has released its fiscal report for Q3 2023, and while much of it is operational information for shareholders, it does provide some insight into where they are in regard to the vicious restructuring that has resulted in a tremendous number of lost jobs.
Headlining this is a 4% growth of sales, but this growth isn’t due to their PC/Console games, which has actually contracted 5%. Instead, this is largely because of their tabletop games and “Entertainment & Services,” while mobile games also saw a small increase.
However, more grim is their headcount. From March 2023 up to December 2023, their headcount has been reduced by 1,383 or, as the report says, about 8% of the total. These cuts are said to have the objective of “transforming Embracer into a leaner, stronger, more focused and cash self-sufficient company.”
Furthermore, Embracer’s report says that the reductions have “a focus on informing affected employees first, and then carried out with compassion, respect and integrity towards those affected.” It hasn’t really sounded that way, but sure.
Speaking of compassion, the report says: “As part of the restructuring program, Embracer still has a few larger structured divestment processes ongoing that could strengthen our balance sheet and further reduce capex.” According to the report, the restructuring is in “the final stretch” and that it’s “focused on both possible divestments and consolidation.”
Of the damage already done by Embracer’s restructuring, we’ve seen developers shuttered and games canceled. Layoffs from Embracer’s subsidiaries seemed to be happening at a near-weekly pace for a while, with the last reported set of them affecting Eidos Montreal and resulting in the cancellation of an unannounced entry in the Deus Ex series.
2023 was a rough year in terms of job losses in the video game industry, and 2024 has already been brutal. Just last month, Microsoft cut 1,900 jobs following their $69 billion takeover of Activision Blizzard. If you want the full depressing picture, Kotaku has a running list of all the job losses in 2024, with the number already approaching 6,500.
