Embracer cancelled 29 unannounced games between July and December

Embracer Group cancelled 29 unannounced games during a six-month period last year, the company confirmed on Thursday.

The company announced in June 2023 that it was implementing a restructuring plan which would involve the closure of studios and the cancellation of projects.

During its first fiscal quarter ended in June, it had 153 unannounced games in development across internal studios and external studios it was financing. That number fell to 138 in its second quarter and to 124 in its third quarter ended in December.

The restructuring also resulted in 1,387 job cuts, or about 8% of its global workforce, during the six months ended in December. This included cutting 871 internal game developers, 252 internal non-developers, and 264 external developers.

As of December, Embracer had 132 internal game studios, down from 139 six months earlier, and was working with 50 external development studios, down from 59.

Embracer CEO Lars Wingefors said on Thursday that the company’s restructuring plan is now entering its “final stretch”, but warned that more cuts could be coming as it looks to sell off more assets.

“As part of the restructuring program, Embracer still has a few larger structured divestment processes ongoing that could strengthen our balance sheet and further reduce capex,” he said.

“Processes are in mature stages. It’s important to add that certain companies might initiate restructuring before any divestment is announced.”

Since announcing its restructuring plan, Embracer’s most notable studio closures have included Saints Row developer Volition and TimeSplitters maker Free Radical Design, while others have reportedly been put up for sale, such as Borderlands developer Gearbox.