Embracer Group Has Witten Down 15 Projects, With More Studio Closures & Buyouts Planned

Embracer Group‘s Chief Financial Offer, Muge Bouillion, revealed during the company’s latest earnings call that it has written down 15 projects, while confirming that more studio closures are planned as part of the publisher’s ongoing restructuring program.

The “15 mainly unannounced projects” written down span a number of studios under Embracer Group’s umbrella, including Amplifier, Freemode, Gearbox, Plaion, Saber Interactive, and THQ Nordic. The company also revealed that despite more closures planned, it is still looking to make more acquisitions down the line.

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At the end of the quarter, the overall headcount was down by 904 versus Q1. This represents a roughly 5% reduction in the workforce. The reduction was primarily driven by internal headcount, which was down by 713, and this comprised 511 developer and 202 non-developer roles. While this is partly business as usual, the majority is driven by the restructuring programme that we have put in place.

Since the end of Q2, in respect of due process and commercial sensitivity, we will not comment on the specifics, but further restructurings, closures, buyouts, are in process, and that will lead to additional headcount reductions.

As previously reported, Embracer Group revealed that some 900 employees had been laid off during its second quarter as a result of the restructuring program. Furthermore, it said that Payday 3 had failed to meet expectations at launch due to various issues that plagued the title.

It was recently suggested that Free Radical, the creator of the TimeSplitters franchise, could also be closed down by Embracer.

[Source – VGC]