Embracer executive says that restructuring is how we win

Date:
Fri, 24 Nov 2023 11:42:46 +0000

Description:
Embracer Group's interim chief strategy officer, Phil Rogers, called the company's layoffs "agonizing" but says they were "necessary."

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Embracer Groups interim chief strategy officer, Phil Rogers, has spoken about the companys restructuring process, and has referred to the mass layoffs its caused as agonizing but a necessary thing for us to hit our new and needed goals.

In an interview with GamesIndustry.biz, Rogers said that restructuring is how we win." He added that its got a lot of good conversations going across the business when it comes to considering how to make the company leaner, stronger, more focused and critically cash self-sufficient, despite its agonizing human impact.

"There's a lot of it going around the industry at the moment of
restructuring, but the downside, obviously, is the impact on people, he said. It's something that really Embracer feels for.

"It's been an agonizing process to see the sort of headcount [reduction], but we know it's a necessary thing for us to hit our new and needed goals, he continued. So overall, good progress and we push on."

Its worth noting that in Embracers latest financial report (published on November 16), it confirmed that as of September 30, 2023, the restructuring program had cut around 5% of the companys workforce, with 904 people affected at the time. From an external perspective, you cant help but wonder if that can be considered winning. In the same report, it was stated that the restructuring is expected to continue through to the end of the current
fiscal year and to reduce capex to a run-rate of around SEK 5 billion (approximately $477 million / 380 million) into FY 2024/25.

Some of those affected include a number of staff within Crystal Dynamics
(best known for its work on the Tomb Raider and Gex series), as well as
Saints Row studio Volition Games, which was shut down in August. In a statement posted to LinkedIn announcing its immediate closure, Volition thanked customers for their support, and said: You will always be in our hearts.

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Link to news story: https://www.techradar.com/gaming/embracer-executive-says-that-restructuring-is -how-we-win


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