Embracer Group has announced that it is entering a 'restructuring program' with a view to becoming a "leaner, stronger and a more focused, self-sufficient company". In other words, it's about to undertake some pretty substantial cost-cutting measures after spending the last six years or so focusing on widespread studio acquisitions.
In an open letter penned on the official Embracer Group website, CEO Lars Wingefors states that the company's actions will include, but not be limited to, the closure or divestments of some studios and the termination or pausing of some ongoing game development projects. It will also decrease spending on 'non-development costs' such as overhead and other operating expenses.
Finally, Embracer Group will readjust its focus on internal IP, thus reducing its third-party publishing going forwards. In terms of which projects will be canceled, Embracer Group has stated that this will be limited to unannounced titles; all games known to the public at the time of writing will still be released as planned.
Obviously, this means many talented individuals at Embracer Group may soon be made redundant in the coming months, though Wingefors is seemingly hesitant to provide any forecast on exactly how many at this stage. The company has made some significant acquisitions in the last several years, including the likes of Limited Run Games, Middle-Earth Enterprises, Gearbox Software, and key assets from Square Enix, including Crystal Dynamics and Eidos-Montréal.