Embracer Group: Reduction of Nearly 2,000 Employees in 12 Months

The Embracer Group, a Swedish gaming conglomerate, confirmed the reduction of its workforce by almost 2,000 employees in the last fiscal year. The company's most recent annual report, released on June 19, 2025, details that 1,857 people were laid off. This measure is part of an extensive restructuring program initiated in June 2023.

The restructuring was triggered after the collapse of a $2 billion partnership proposal, which reportedly involved the Savvy Games fund from Saudi Arabia.

Most of the cuts occurred in the PC and console gaming segment, which saw a reduction of 1,486 employees, dropping from 6,404 to 4,918. The mobile segment was also impacted, with a decrease from 1,081 to 743 employees. The entertainment and services division had a smaller decrease, from 771 to 738 people.

The company reported that, since March 2023, the total reduction in personnel reached 4,532 employees, representing 27% of the company's workforce, in addition to the cancellation of 80 game projects in development. Although Embracer claims that this restructuring has made it a "leaner and more focused" company, the human cost of these actions is evident. The layoffs and studio closures, such as that of Volition (developer of Saints Row) and the sales of companies like Gearbox, reflect a period of austerity.

Considering the scale of the cuts and canceled projects, what is the future of the Embracer Group in the gaming market and its long-term recovery capability?