Embracer Group Cuts Over 1,800 Jobs Last Year Amid Major Restructuring Efforts

Credit: Embracer Group

Swedish gaming giant Embracer Group has reduced its workforce by 1,857 employees over the past financial year, as revealed in its latest annual report (Thanks Eurogamer).

The layoffs, which affected multiple divisions across the company, are part of Embracer's larger restructuring efforts that began in mid-2023. 

While job cuts were spread across various departments, the PC and console games segment was hit hardest, shedding 1,486 employees. The headcount in this area dropped from 6,404 in March 2024 to 4,918 by March 2025.

The mobile games division also saw a significant reduction, with staffing falling from 1,081 to 743. Meanwhile, the entertainment and services unit experienced a smaller decline, dropping from 771 to 738 employees.

Following all these changes, Embracer now reports a total workforce of 6,482 people across all its segments.

Beyond just job losses, the company also reported a decrease in the number of its internal studios. The PC and console segment now comprises 62 studios, down from 73 the previous year. On the mobile side, studio numbers dropped from 11 to just 8.

Embracer has divested several high-profile assets, including Saber Interactive, Gearbox, and Easybrain. The company is currently in the process of splitting into three separate publicly traded entities: Coffee Stain Group, Fellowship Entertainment, and Asmodee. Embracer Group AB will remain the parent company overseeing these divisions.

One notable shift in leadership also comes with this restructuring. CEO and co-founder Lars Wingefors will step down in August 2025 and transition into the role of executive chair of the board. He’ll be replaced by Phil Rogers, a former executive at Eidos and Square Enix.

According to the company’s statement in the report, 2024 was described as a “year of consolidation and restructuring,” not only for Embracer but for the games industry at large. It acknowledged widespread job layoffs and closures throughout the sector and suggested that while such changes might persist into 2025, the worst phase may now be behind them.

Amid all the downsizing, Embracer is still moving forward with development plans. The report highlights that the company owns 464 IPs and is currently managing 108 active game projects. It plans to release 76 titles during the 2025–2026 fiscal year, including a mix of sequels, remasters, and original games. One of its most anticipated titles is Marvel 1943: Rise of Hydra, developed by Amy Hennig’s studio and now scheduled for early 2026.