3D Realms hit with layoffs as Embracer tightens belt

3D Realms is the latest video game studio to get hit with layoffs as a result of Embracer Group's aggressive cost-cutting plan.

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Despite making an estimated $184 billion throughout the year, 2023 has been a terrible year for some of the people who make games. The games industry has suffered over 7,000 layoffs across all disciplines as more publishers, developers, and parent companies aim to reduce spending budgets. Higher costs are eroding year-over-year profit numbers and margins, and now billion-dollar publishers and smaller-scale devs alike are pulling the layoff lever.

Decentralized, entrepreneur-funded Embracer Group has been hit particularly hard by layoffs. The company laid off 904 workers as of September 2023, of which 700+ were game devs, and Embracer said more layoffs were likely. Now that's happened: Layoffs have come for Danish games publisher 3D Realms, who released the original Duke Nukem on PC.

The news hasn't been made public just yet and very few 3D Realms developers are sharing details on social media. The info was first shared by Scott Miller, who founded 3D Realms way back when.

"Several sources have told me this bad news. Sorry to hear about another drop of the axe by Embracer Group, this time landing on Danish 3D Realms," Miller said on Twitter.

"A lot of people, including core devs, will be looking for work ASAP. Hopefully they land jobs soon. This one hits me hard because I worked with the new 3D Realms from 2014 up until when they were bought out by Embracer 2.5 yrs ago."

We did get confirmation of layoffs from one employee. Michael Markie, who handled music composition for 3D Realms and Slipgate Ironworks, shared that he had been laid off shortly before the holidays:

3D Realms is currently under the purview of parent label Saber Interactive, which is one of Embracer Group's operating divisions.