In its latest financial report, Embracer Group reiterated that it will always do everything in its power to create maximum value for its shareholders. Not a surprising statement from a company, of course, but it is very painful after nearly 1,400 people lost their jobs within the company in six months, including due to the closure of a number of studios.
The company is unsure whether the goal is to reduce the debt mountain to SEK 8 billion (€711 million) by the end of the financial year (which is still ongoing for one quarter). In order to succeed in this, it is now looking at the possibility of divesting certain parts (ie the studios). Advanced negotiations are also said to be underway for this purpose. Additionally, jobs may disappear first at sold-out studios.
Embracer Group has made several major purchases in the past, including Gearbox, Eidos Montreal and THQ Nordic, but was forced to make major changes last year due to a lack of major successes. It stated that it had to shift from an “intensive investment mode” to a “high cash flow generating business.”
There seems to be no end to the changes within the Embracer Group and we may expect some layoffs at the Swedish company in the coming months and thus possibly also the sale of a number of studios.
