This morning, Embracer Group took to YouTube to release their Q2 financial earnings, and CEO Lars Wingefors addressed exactly how many were let go by the June Embracer layoffs.
It has been a turbulent year for the video game industry. Many studios have issued layoffs that have affected hundreds of staff all across every aspect of the industry, and last June, Embracer layoffs hit the company particularly hard. This occurred after a $2 billion dollar deal with the speculated partner, Saudi group Savvy Games, fell apart before closing and after Embracer Group made a statement by buying many studios in 2022. The Embracer layoffs in June were addressed in the company’s Q2 financial earnings (June – September 2023) by CEO Lars Wingefors and not only is the number massive, but he warns there is more to come.
The Embracer Group is estimated to have employed about 17,000 people in June, and today it was announced that 5% of the total workforce has been affected by the Embracer layoffs. That means about 900 jobs have been cut from the group, which went on a massive buying spree in 2022.
CEO Lars Wingefors addressed the audience in the opening statement of the earnings report by thanking the 900 former employees who “left” Embracer, and continued with “As you will hear today, we are determined to transform Embracer into a leaner, stronger company,” referring to the possibility of more Embracer layoffs in the room.
What’s interesting, is Wingefors addresses the audience of shareholders with “In Q2, we delivered a stable performance and improved cash flow,” referring to an uptick in profits Embracer achieved for the quarter. Wingefors says the studio closures and layoffs are “ahead of them” moving forward, but continues to suggest improved financial performance “will lead to further headcount reductions”.
While no further studio closures or announcements were made today (thankfully), Wingefors assures the shareholders (and their purses) “We continue to take important steps for the future and I am confident that we will emerge as a stronger company.” The whole Q2 statement can be found straight from the company’s YouTube channel.
