Embracer has laid off 4,857 workers, cancelled 74 games, and closed 36 studios in the last year

Embracer Group's new quarterly report shows just how much the decentralized entertainment empire has cut from itself in an effort to stabilize and maintain profitability.

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Like most of the video games industry right now, the Embracer Group has enacted some pretty harsh cost-cutting measures to help boost its margins. The group, which used to house a multitude of development teams and IPs from across the globe, went through a mass culling that saw thousands of people being laid off, and dozens of studios being shut down alongside dozens of game cancellations.

Recent figures from Embracer's Q2 2024 earnings report underlines how far these cuts actually went. We put together some numbers and graphs to illustrate the reductions in headcount, actual game projects, and studio closures.

Embracer Group Q2 2024 Metrics

• Game development projects - 127, reduction of 74 games
• Developer headcount - 6,659, reduction of 3,995 people
• Total worker headcount - 10,844, reduction of 4,857 people
• Internal studio count - 140, reduction of 48 studios

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In the report, Embracer Group CEO Lars Wingefors reiterates that the company will now focus more on strong existing franchises and is more carefully vetting which games it chooses to fund over time:

"There is a clear plan to improve profitability within the operating segment PC/Console Games. Resources are increasingly focused on own and controlled key IPs, which typically have better unit economics. An updated capital allocation process, with improved standards for new and continued investment, is also expected to improve ROI from new game releases.

"Further, continuous improvements as part of the ordinary business are expected to yield improved operational efficiency and capital allocation."