Embracer Group soon in a new structure?16. June 2023
Embracer Group soon in a new structure?
Berlin, June 15, 2023
Embracer Group, a Swedish gaming conglomerate, is undergoing a reorganization that could result in studio closures and game cancellations. The decision will also result in an undisclosed number of layoffs at Embracer, which owns popular titles like Tomb Raider and Lord of the Rings.
Embracer Group will undergo a three-stage restructuring through March 20234 to reduce debt and streamline operations. In this regard, Matthew Karch and Phil Rogers have been appointed interim chief operating officer and interim chief strategy officer, respectively.
The company’s workforce of 17,000 employees will be reduced, but no specific figures have been given.
Embracer Group plans to capitalize on its Lord of the Rings IP, taking inspiration from Amazon’s The Rings of Power and Warner Bros. Discovery’s new film projects.
Amidst setbacks, including the cancellation of a $2 billion partnership, as well as development delays and weaker demand, Embracer’s stock plummeted 40% in late May.
Embracer Group said expected releases like the upcoming Tomb Raider game will go ahead as planned.