Embracer confirms 900 employees laid off in previous financial quarter
"These are difficult decisions and we do not take them lightly."
Embracer co-founder and CEO Lars Wingefors has confirmed 900 employees were laid off in the past financial quarter, representing five percent of the workforce.
The company is in the midst of a "comprehensive restructuring programme" it announced in June to close studios and cut jobs, to transform the company into "a leaner, stronger, more focused and cash self-sufficient company".
In the company's latest financial report, Wingefors provided an update on restructuring progress, acknowledging the company's "first ever quarter-over-quarter reduction in headcount".
"In this group-wide effort, we are not only discontinuing a number of studios, we have also made staff reductions and reduced the number of projects in several other studios, with a focus on improving the projected return on investment within PC/Console," said Wingefors.
"It's never easy to part ways with talented individuals. I would like to put on record a special thanks to the people who have left Embracer in the quarter. These are difficult decisions and we do not take them lightly. For me, personally, it is crucial that the program is carried out with compassion, respect, and integrity."
The CEO described the quarter as "stable", with company net sales increasing by 13 percent despite a five percent drop in PC and console game sales compared to last year - offset by a boost in tabletop game sales and the entertainment and services segment.
Revenue from PC and console sales dropped by seven percent YoY, which the company attributes to strong sales of Saints Row last year. Remnant 2 has been a success since it was released in July and has now sold over 2m units - it received DLC earlier this week.
Payday 3, meanwhile, received a "mixed reception and performance" due to an "unforeseen error relating to external matchmaking software" - an issue that's since been fixed.
Earlier this month, Embracer's chief operating officer Egil Strunke left the company and reflected on its future, stating "I am positive that Embracer will come out stronger and with a long, bright future ahead of them."
Strunke's departure followed layoffs in September at Tomb Raider developer Crystal Dynamics and Mythforce developer Beamdog.
Reports have also suggested TimeSplitters studio Free Radical is facing closure.