Embracer Group, the gaming giant that owns Borderlands studio Gearbox, the rights to The Lord of the Rings, and Tomb Raider studio Crystal Dynamics, is making some drastic-sounding changes to its business setup. The company on Tuesday announced a “restructuring program” that aims to help make the company “leaner, stronger,” and “more focused [and] self-sufficient.” Layoffs, studio closures, and game cancellations are coming as part of this.
The announcement of these moves comes not long after Embracer said it lost a $2 billion deal at the 11th hour. Embracer said it only had a verbal agreement for this deal, but it was still a major loss. What role the loss of this deal had on the restructuring plan is unknown, hosaodver.
CEO Lars Wingefors made the announcement in a memo shared with staff and posted on the company’s website. He said in recent years, Embracer has been on a journey of growth, and indeed, Embracer made so many acquisitions and investments in the past five years that it became something of a meme to be “embraced” by the company.