Embracer Group has already laid off 1,400 employees and has no plans to stop

Fiscal year 2023 was a challenging one for Embracer: the cancellation of a new game in the Deus Ex series, massive restructuring and optimization within such studios as 3D Realms, Slipgate Ironworks, Free Radical Design, Fishlabs. Gearbox, the developer of Borderlands, is now up for sale.

In total, up to 1,400 employees of various studios under the publisher’s control were laid off in 2023. Embracer Group CEO Lars Wingefors said that the restructuring plan is entering the home stretch, but warned that cuts will continue as the company plans to sell even more assets.

“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,” said Wingefors.

As of December 2023, Embracer Group’s net debt amounted to SEK 16.1 billion, or $1.5 billion.

Embracer has been trying to reduce its debt since a $2 billion investment in the company fell through. The publisher has already managed to use this money to finance its own deals and produce games. Later it became known that the mystery partner was the Saudi company Savvy Games Group.