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In the latest wave of industry shakeups, 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. Founder of 3D Realms, Scott Miller, expressed his sorrow on X (formerly Twitter), acknowledging the unfortunate news. “Sorry to hear about another drop of the axe by Embracer Group, this time landing on Danish 3D Realms,” he shared. Miller, who worked closely with 3D Realms until their acquisition by Embracer 2.5 years ago, expressed concern for those now seeking employment due to the restructuring.
Various team members, including level and sound designer Michael Markie and lead character artist Lars Bundvad-Åmodt, took to social media to share their experiences of being part of Embracer’s recent layoffs. The impact on these individuals is palpable, with Bundvad-Åmodt simply stating, “Bad news times.”
In response to inquiries, an Embracer representative provided a statement to Eurogamer, highlighting the comprehensive restructuring program announced in June. The program aims to achieve cost savings, efficient capital allocation, and operational improvements, potentially leading to studio closures and project terminations. Embracer Group’s acquisition of 3D Realms and Slipgate Ironworks occurred 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, have faced the repercussions of this initiative. In the last financial quarter, 900 employees, constituting five percent of the workforce, were laid off. Embracer’s co-founder and CEO, Lars Wingefors, confirmed these developments and acknowledged the challenges faced by the company in a tumultuous year.