In the latest wave of industry upheaval, Embracer Group’s restructuring program has taken its toll on game development studios 3D Realms and Slipgate Ironworks. While Embracer has not officially commented on the layoffs, reliable sources indicate that the news is indeed accurate, with affected team members confirming the impact. 3D Realms founder Scott Miller expressed his sadness on Xu (formerly Twitter), acknowledging the unfortunate news. “We are sorry to hear of another attempt by the Embracer Group, this time on the Danish 3D kingdoms,” he said. Miller, who worked closely with 3D Realms until its acquisition by Embracer 2.5 years ago, expressed concern for job seekers now due to the restructuring.
Various members of the team, including level and sound designer Michael Markie and main character artist Lars Bundvad-Åmodt, have taken to social media to share their experiences participating in recent Embracer layoffs. The impact on these individuals is palpable, and Bundvad-Åmodt simply says, “Bad news times.”
In response to inquiries, a representative for Embracer provided a statement to Eurogamer, highlighting the extensive restructuring program announced in June. The program aims to achieve cost savings, efficient capital allocation and operational improvements, which may lead to study closures and project terminations. Embracer Group’s acquisition of 3D Realms and Slipgate Ironworks took place in 2021. The ongoing restructuring follows the collapse of a proposed $2 billion partnership earlier this year. Multiple studios, including Crystal Dynamics and Zen Studios, faced the fallout from this initiative. In the last financial quarter, 900 employees were laid off, which is five percent of the workforce. Co-founder and CEO of Embracer, Lars Wingefors, confirmed this development and acknowledged the challenges the company has faced in a tumultuous year.
