I know I was one of the people who initially cheered on the Microsoft acquisition of Activision Blizzard. Since then, I’ve learned of the dangers of consolidation. It seems the Embracer Group might be learning the same lesson. Unfortunately, its lesson comes with more dire consequences.
The co-founder and CEO Lars Wingefors confirmed on Thursday that 900 of their employees were laid off last quarter. This was five percent of their total workforce.
This was due to the company’s “comprehensive restructuring program” that was announced back in June. It was meant to close studios and cut jobs. Ultimately, the goal was to become “a leaner, stronger, more focused and cash self-sufficient company”.
Wingefors provided a prgress report during the company’s latest financial report. It was there he mentioned the company’s “first ever quarter-over-quarter reduction in headcount”.
n 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.
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.”
Lars Wingefors, Co-founder and CEO, The Embracer Group
It’s just weird to me that the company that was doing the most moving and shaking in the past couple of years seems to be the one having the toughest time keeping things together. It was a huge joke for me, at least, to say all these studios were being “Embraced”. Now it just looks like they were being strangled to death.
For Embracer to come out and say they want to become “self-sustaining”, why wasn’t that the thought to begin with?
Source: Eurogamer
