KEY POINTS
- Around 32 employees were reportedly hit by the job cuts
- Embracer’s CEO announced a restructuring program in June and hinted about layoffs and studio closures
- Embracer-owned studio, Cryptic Studios, was also reportedly hit by layoffs earlier this week
Embracer Group-owned Zen Studios has reportedly been hit by layoffs amid a restructuring process at the video game company. The studio is known for developing the Pinball FX game series.
Adam Dienes, a former community manager at the Budapest-based studio, shared on social media that the layoffs took place on Oct. 13.
“The video game downsizing caught with me too … I was fired from my current job together with more than 30 other colleagues,” he wrote on X, according to a Google translation.
A videojátékos leépítés engem is utolért: péntek 13-án több mint 30 másik kollégámmal együtt kirúgtak a jelenlegi munkahelyemről, ezért új helyet kell keresnem. Amennyiben bárki tud bármilyen lehetőségről, kérem, szóljon – akár egy RT is segíthet. 🙏 #munka #gaming #work #layoff pic.twitter.com/3tF2yP4UtE
— Ádám DNS (IGN) (@profdns) October 14, 2023
A total of 32 employees were reportedly laid off earlier this month at the studio.
“On the 13th of June, Embracer announced a comprehensive restructuring program for FY 23/24, running until the end of March 2024. The program includes a series of initiatives that will focus on cost savings, capital allocation and operational and financial efficiency measures,” the video game company told International Business Times.
It also said the restructuring could include “closing of studios and termination of projects,” adding all affected employees will be given prior notice. It did not specify which studios will be hit by the restructuring or the exact number of affected employees.
Embracer Group CEO Lars Wingefors, in an open letter in June, said the restructuring program will turn the gaming company into a “leaner, stronger and a more focused, self-sufficient” business.
The CEO said Embracer invested heavily in acquisitions and applied an “accelerated” strategy of organic growth. He hoped the reorganization program would transition the company from a “heavy-investment mode to a highly cash-flow generative business” this year.
The main focus of the restructuring process was cost-cutting, capital allocation, consolidation and efficiency. The first phase will mainly target cost-saving efforts “across the group.” Wingefors said while some positions will be eliminated, hiring will continue in other roles.
The company also looks to reduce third-party publishing and increase “external funding of large-budget games.”
Embracer has already started implementing cost-cutting measures. Saber Interactive, which was acquired in February 2020, announced last month it will no longer develop new content for Evil Dead: The Game. It added that a Nintendo Switch version of the title was not possible.
Zen Studios was also acquired by Embracer in 2020 and was operating as a subsidiary of Saber.
Multiple reports emerged earlier this week about possible layoffs at another Embracer-owned studio, Cryptic Studios, the developer of Star Trek Online. Embracer acquired it late in 2021. Some key members of the studio, including senior community manager Mike Fatum and senior game designer Jesse Heinig, announced on LinkedIn they are open for new roles.
