The layoffs in the industry they would not be limited only to 2023, unfortunately. Analysts and members of this entertainment industry warned that staff cuts and studio closures would continue over time, and Embracer Group heads the layoff list in 2024. Yes, the European giant is once again the subject of criticism for firing, for the second time in less than a month, members of the 3D Realms and Slipgate Ironworks.
These American and European studies, respectively, have trajectories different in the industry, but equally significant. 3D Realms has been developing video games since 1987 and we owe them titles like the original Prey or Shadow Warrior. Meanwhile, Slipgate Ironworks has worked as co-developer of games like Ghostrunner or been responsible for ports of games like Ancestors Legacy or Daymare: 1998.
Both studios joined Embracer Group in 2021, when it acquired Saber Interactive, the owner of these studios, to become part of its portfolio of video game development companies. However, this giant of the old continent has returned to reduce staff of these two studies, and among those fired are 3D artists, creative producers and designersmany of them with almost two decades of experience.
Although the number of layoffs in this new wave has not been revealed, Embracer Group becomes the first company to lay off staff in 2024, and this is not something to celebrate. Not only did they lay off more than 900 employees from several of their subsidiaries in 2023, with Crystal Dynamics, Volition or Gearbox leading the way, but both 3D Realms and Slipgate Ironworks add a second cut of staff in just 30 days.
Embracer Group will continue cutting staff this quarter
Worst of all, this will not be the last wave of layoffs, unfortunately. The European business conglomerate announced that, with the aim of restructuring its studies and making changes to its future business strategy, the “business movements” (layoffs and study closures) will extend up to March of this year 2024.
