Online game holding firm Embracer Group has introduced that it’s “restructuring” and can bear a collection of worker layoffs, studio closures, and sport cancellations within the course of.

In an open letter revealed at the moment (June 13), Embracer Group CEO Lars Wingefors shared that in response to “the worsening financial system and market actuality,” the corporate shall be present process a interval of cost-saving and “optimisation”.

Set to run till March 2024, Wingefors claimed the restructuring will create “development in profitability” for the corporate — though it’ll additionally see staff hit with layoffs, together with sport cancellations and the closure of studios inside Embracer Group’s portfolio.

“The actions will embrace, however not be restricted to, closing or divestments of some studios and the termination or pausing of some ongoing sport growth tasks,” shared Wingefors. “It’ll additionally embrace decreased spending on non-development prices resembling overhead and different working bills. We’ll scale back third celebration publishing and put better deal with inside IP and improve exterior funding of large-budget video games.”

Whereas it’s “too early” to say what number of workers shall be affected, Wingefors famous that solely unannounced video games have been cancelled.

Embracer Group is the proprietor of quite a few sport firms, together with Gearbox Leisure, Plaion, Saber Group and THQ Nordic. In flip, every of these teams are dwelling to quite a few studios — together with the builders behind Lifeless Island 2, Borderlands, Saints Row, and Warhammer 40,000: Area Marine 2, to call just a few.

Final yr, Embracer Group bought Crystal Dynamics (Tomb Raider) and Sq. Enix Montréal from Sq. Enix, although closed the Montréal studio simply two months after shopping for it.

2022 additionally noticed Embracer Group purchase Center-earth Enterprises, which gave the corporate rights to The Lord Of The Rings and The Hobbit.

Wanting forward, Wingefors has claimed that restructuring will make Embracer “a stronger, extra environment friendly firm” — although it stays to be seen what number of studios shall be closed, or staff laid off, consequently.

In different information, Bethesda‘s Todd Howard has urged that The Elder Scrolls 6 could also be his final sport.