The recent announcement by the CEO of Embracer that the company’s extensive layoffs were coming to an end has proven to be false. Despite the reassurances given by the CEO, Embracer is still enforcing layoffs and shutting down studios, causing significant job losses across their owned studios. A support studio for Diablo IV and Tiny Tina’s Wonderlands has been hit hard, with over half of the employees losing their jobs.
Mass Layoffs
A total of 139 workers were laid off last week, according to a legal notice submitted to the Wisconsin state government. The roles affected range from junior VFX artists to senior QA analysts, including an executive producer and a creative director. The studio, which had over 200 employees before the layoffs, is now facing a challenging time as they navigate the aftermath of the job cuts.
CEO Shaun Nivens addressed the situation in a LinkedIn post, acknowledging the difficult decision to reduce the workforce. He emphasized that such decisions are not taken lightly and are only made after exploring all other options. Nivens expressed the studio’s commitment to supporting the affected employees during this transition period. The statement also attributed the layoffs to “shifting market conditions,” indicating the external factors influencing the studio’s operations.
Impact on Development Partners
As a co-development partner studio, Lost Boys Interactive is directly affected by the projects and priorities of their development clients. The studio provides QA and art support to client developers and has previously collaborated with companies like Amazon and PlayerUnknown’s Battlegrounds. The acquisition by Gearbox, and subsequently by Embracer, has resulted in multiple rounds of job losses, with the recent layoffs being another blow to the studio’s workforce.
Embracer’s actions reflect a broader trend in the games industry, where mass layoffs have become increasingly common. The company’s aggressive mergers and acquisitions have led to significant job losses, with more than 8% of their global workforce being affected. The cancellation of a potential Red Faction sequel further highlights the impact of these layoffs on the company’s projects and personnel.
Unfulfilled Promises
Despite the CEO’s assurances to investors that the era of massive layoffs was coming to an end, the recent events at Lost Boys Interactive paint a different picture. The continued job cuts and studio closures demonstrate a disconnect between the company’s promises and their actions, leaving many employees uncertain about their future in the company. The cycle of layoffs and restructuring within Embracer raises questions about the company’s long-term strategies and the impact on its workforce.
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