Embracer Group, a Swedish gaming conglomerate, is undergoing a restructuring that may involve studio closures and game cancellations. The decision will also result in an undisclosed number of layoffs at Embracer, which owns popular IPs such as "Tomb Raider" and "Lord of the Rings." Embracer Group will undergo a three-phase restructuring until March 2023 to reduce debt and streamline operations. - As part of the changes, Matthew Karch and Phil Rogers have been appointed interim chief operating officer and interim chief strategy officer, respectively.
- The company's workforce of 17,000 employees will be reduced but no specific numbers were given.
What's next: - Embracer Group plans to capitalize on its "Lord of the Rings" IP, aligning with Amazon's "The Rings of Power" and Warner Bros. Discovery's new movie projects.
- Facing setbacks including the cancellation of a $2B partnership, as well as development delays and weaker demand, Embracer's stock value plummeted by 40% in late May.
- Embracer Group said that anticipated releases like the upcoming "Tomb Raider" game will proceed as planned.
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