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Head of Embracer Group: Cuts are something everyone needs to go through

The CEO of the Swedish conglomerate Embracer Group, Lars Wingefors, answered questions from investors. Some of them concerned mass layoffs in subsidiary studios, to which the head of the company stated that this was a global trend:

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Almost all companies go through a restructuring program. The industry has seen less investment in content. I think the consumer market continues to grow, but there are a lot of underlying changes going on in the industry. This certainly affects everyone.

 

I think if you look at the 8% staff reduction [at Embracer], it becomes obvious. I don’t know the numbers for the entire industry, but I think this is something that everyone needs to go through. As I said, this is largely due to overinvestment in previous years, because many simply invested all their capital in games, and perhaps even too much in some cases.

 

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The company’s recent financial report indicated that as part of the restructuring, 29 games were canceled and 16 studios were closed/sold—for less than a full year, the number of canceled games was 42.

 

The CEO called all these processes “adaptation to a new reality”, thanks to which “Embracer’s development model is adjusted and improved.”

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