Since the start of their “restructuring”, Embracer has dismissed 8% of their worldwide employees.



Embracer has outlined extensive debt restructuring efforts in their interim financial results for Q3 (October-December 2023), having laid off 8% of their global workforce since June 2023 and reducing the number of game projects in development from 224 to 179. CEO Lars Wingefors portrayed the period as “a stable quarter” with Embracer being “on track” to meet targets outlined in their restructuring program, now entering its final stages. This stage addresses potential divestments and consolidations, signaling possible further studio reductions and closures.

Wingefors pointed to the ongoing divestment processes as a tool for strengthening Embracer’s balance sheet and curtailing capital expenditure. This could involve proactive restructuring measures set in motion by some companies before divestment announcements, the CEO hinted. Despite the attempts at restructuring, Wingefors hinted at the possibility of not achieving the under SEK 8 billion net debt target by March 31, suggesting this may roll over into the next fiscal year. However, despite some solid delivery across various segments, he emphasized that there is potential for financial performance improvement, particularly in PC/Console.

While sketching out the extent of layoffs, Wingefors assured that they are executed humanely and with respect. Lessons learnt from the situation have reportedly contributed to an updated capital allocation process aimed at improving future cash flow return on investment. In light of Embracer’s recent financial issues, attributed to numerous studio and license acquisitions during the pandemic, Wingefors said that the company will be more selective with future investments, focusing on game portfolios around established brands and studios to enhance predictability, return on investment, and profitability.


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