Embracer Group Embracer Group Layoffs Games Industry Layoffs Lars Wingefors News

Embracer Group’s Restructuring Is Now Complete, CEO Says It’s “Too Early” To Consider Acquiring More Studios

Embracer Group is a company that’s name has been synonymous with dirt for many in the games industry, after it embarked on a ‘restructuring program’ that saw thousands of developers lose their jobs, the closure of long-running studios and the cancellation of multiple highly anticipated projects.

After a $2 billion deal with Saudi Arabian government-owned Savvy Games Group fell through at the last minute, it was the people who had nothing to do with the deal failing that suffered the consequences.

Chief executive officer Lars Wingefors however, the person directly involved with a $2 billion deal falling through, still has a job, and will still have a job it seems, since Wingefors confirmed in the company’s most recent investors call that its restructuring program has concluded.

“We are ending the restructuring programme now, end of March, and the Gearbox restructuring process has been part of that programme.” Wingefors said on the call, per Rock Paper Shotgun.

With the program now finished, an investor wanted to know when Embracer would start acquiring studios again. Wingefors responded by saying it’s “too early” to think about that yet.

“Looking to do more [mergers and acquisitions] deals – I think it’s way too early to start talking about restarting the M&A engines again.

Now we are in the late phases of the consideration into the future of the group, and that’s our highest focus and priority – how we set up ourselves and structure ourselves, and utilise our assets we have within the group, and have them work together, and how we leverage them better working together, utilising different functions, I think that’s our focus right now.

To increase profitability and cash-flow generation, by simply making better products and games.”

Thankfully there were a few branches that are now formally-Embracer owned, who were able to escape before the mass layoffs drastically impacted them.

It was confirmed just this week that Gearbox was sold to Take-Two, with most of its assets, though sadly not Gearbox Publishing, which resulted in more layoffs.

Saber Interactive was also sold as part of the restructure, and retained that highly-anticipated Star Wars: Knights Of The Old Republic Remake.

It’s good to know that this huge restructuring program is finished, but as many have pointed out since it began, the damage Embracer Group, and more specifically Wingefors and the rest of the company’s c-suite has done to the industry is irreparable, and will continue to be felt for years to come.

Though at least for now, hopefully the industry can rest a bit easier tonight, knowing that Embracer Group’s bleeding of talent, for now, has come to an end.

Source – [Rock Paper Shotgun]