Swedish video game giant Embracer announced a major restructuring plan on Tuesday that includes the closure of studios and the cancellation of several game projects.
The measures will include the closure of “certain studios and the completion or suspension of certain ongoing game development projects,” Embracer CEO Lars Wingefors said, without elaborating.
The publishing house, whose headquarters are located in the city of Karlstad (western Sweden), has been immersed in a wave of acquisitions for several years. On his site, he prides himself on owning or controlling over 850 games today (tomb Raider, God Ex, borderlandsetc…) and 138 studies.
Reduce fees by 10%
In May, the company suffered, however, a setback after the withdrawal of a potential “major strategic partnership” – a project estimated at 2,000 million dollars – that led it to revise its forecasts downward.
This project, killed in the bud, would have made it possible to better amortize “costs already capitalized for a range of high-budget games” and would have significantly improved the “medium and long-term profit” of the video game publisher.
In late May, Embracer’s shares crashed on the Stockholm Stock Exchange, returning more than 44% at the close. The restructuring plan aims to reduce overhead costs by 10% for the 2024/2025 fiscal year.
“Embracer currently employs around 17,000 people and although this number will be reduced by the end of the year, it is too soon to give an exact forecast on this,” added Lars Wingefors. On the Stockholm Stock Exchange on Tuesday at noon, the stock took about 1%.
Source: BFM TV
