Embracer Group Cancels New Deus Ex Game In Development At Eidos-Montréal, Lays Off 97 Employees

Embracer Group has canceled a new Deus Ex game in development at Eidos-Montréal, according to a new Bloomberg report. Alongside this cancelation, Eidos-Montréal, which is the studio behind 2021’s Marvel’s Guardians of the Galaxy and both Deus Ex: Human Revolution and Deus Ex: Mankind Divided, has revealed it is laying off 97 employees. 

Bloomberg reports that Eidos-Montréal had been working on this new unannounced Deus Ex game for two years, and it was set to enter production later this year, according to sources familiar with the studio. It seems the studio’s canceled game and subsequent layoffs are another casualty of Embracer, which has been purging studios after a planned $2 billion deal with Saudi Arabia-backed Savvy Games Group fell through last year. 

Eidos-Montréal has not addressed the canceled Deus Ex game, and it’s unlikely it will. However, the studio posted the following statement today regarding the 97 people laid off there. 

“For the last 17 years, our teams at Eidos have worked on some of the most beloved brands in the industry, combining deep storytelling and innovation into unique games. We have created memorable multi-awarded experiences that we are proud of and we know our team members have put their heart and soul in all of them. 

“The global economic context, the challenges of our industry, and the comprehensive restructuring announced by Embracer have finally impacted our studio. The difficult decision has been made to let go 97 people from development teams, administration, and support services.

“We are working to support all impacted personnel through this transition. These very talented, highly experienced people are entering the employment market, and we want them to find their next projects and are helping to do so.

“As we navigate these difficult times, the well-being of our team is our priority and the continuous commitment to creating games that players will be able to enjoy in the nearby future. 

“To our players… it’s often times not just the games but the game makers as well that we celebrate and admire. Our commitment is always to making the best games for our amazing fans and even with this restructuring change, we continue to fight on to deliver those awesome experiences for us to share together. Thank you for your continuing support and well wishes.” 

These job cuts join a string of other disheartening 2024 layoffs, which total more than 5,500 in just the first 29 days of the year. Destroy All Humans remake developer Black Forest Games reportedly laid off 50 employees last week, and Microsoft announced it was laying off 1,900 employees across its Xbox, Activision Blizzard, and ZeniMax teams last week as well. Outriders studio People Can Fly laid off more than 30 employees last week, and League of Legends company Riot Games laid off 530 employees. 

We recently learned Lords of the Fallen Publisher CI Games was laying off 10 percent of its staff, that Unity would be laying off 1,800 people by the end of March, and that Twitch had laid off 500 employees. 

We also learned that Discord had laid off 170 employees, that layoffs happened at PTW, a support studio that’s worked with companies like Blizzard and Capcom, and that SteamWorld Build company, Thunderful Group, let go of roughly 100 people. Dead by Daylight developer Behaviour Interactive also reportedly laid off 45 people, too. 

Last year, more than 10,000 people in the games industry or game-adjacent industries were laid off. 

In January of last year, Microsoft laid off 10,000 employees amidst its ongoing $69 billion acquisition of Activision Blizzard, which it completed in October. 

Striking Distance Studios, the team behind 2022’s The Callisto Protocol, laid off more than 30 employees in August of 2023. That same month, Mass Effect and Dragon Age developer BioWare laid off 50 employees, including long-time studio veterans. The following month, in September, Immortals of Aveum developer Ascendant Studios laid off roughly 45% of its staff, and Fortnite developer Epic Games laid off 830 employees. 

In October of last year, The Last of Us developer Naughty Dog laid off at least 25 employees, and Telltale Games also underwent layoffs, although an actual number of affected employees has not yet been revealed. Dreams developer Media Molecule laid off 20 employees in late October.

In November, Amazon Games laid off 180 staff members, Ubisoft laid off more than 100 employees, Bungie laid off roughly 100 developers, and 505 Games’ parent company, Digital Bros, laid off 30% of its staff. 

In December, Embracer Group closed its reformed TimeSplitters studio, Free Radical Design, and earlier in the year, Embracer closed Saints Row developer Volition Games, a studio with more than 30 years of development history. A few weeks before the winter holidays, Dungeons & Dragons and Magic: The Gathering owner Hasbro laid off 1,100 employees. 

The games industry will surely feel the effects of such horrific layoffs for years to come. The hearts of the Game Informer staff are with everyone who’s been affected by layoffs or closures.

[Source: Bloomberg]