Embracer Group Subsidiaries Shut Down Or Hit By Layoffs These Past Few Weeks

Several studios have been caught in the aftermath of Embracer Group’s botched $2 million deal, including Crystal Dynamics, Beamdog, Gearbox Publishing, Zen Studios, and more recently, Digic Animation.

The aforementioned studios have all been hit with layoffs of varying degrees in the past two weeks as part of the company’s restructuring and cost-cutting efforts. According to GamesIndustry.biz, 10 employees were laid off at Crystal Dynamics, 26 at Beamdog, 32 at Zen Studios, 35 at Digic Animation, and an unknown number from various studios under the Gearbox Publishing arm.

Cabal Campfire was also shut down in August, barely a year after it was founded, and Volition Games later that month. Embracer had previously announced its intent to close or sell off several of the 130 studios under its umbrella and pause or cancel development on 200 or so games after its failed partnership deal with Saudi Arabian-studio Savvy Games and the subsequent drop it its share prices.

As for the company’s employees, Embracer CEO Lars Wingefors said that the company employs roughly 17,000 people and that it will be lower by the year’s end, to what extent still remains to be seen.