Embracer Group’s restructuring efforts have hit another of the company’s studios. This time, around 50 employees have been let go from Fishlabs, a studio known for Galaxy on Fire and bringing Valheim to Xbox.
This is the latest round of cuts the company has made, with Fishlabs parent company, PLAION confirming the news and that Fishlabs will be downsizing and canceling an unannounced project as a result. The team’s most recent release was the Xbox version of Valheim, which was released back in March.
“Despite exhaustive efforts to avoid downsizing, the lack of approval and therefore financing for the studio’s unannounced project (also referred to as “Project Black”) has made this step unavoidable. The remaining team will continue to work on the existing co-development projects in partnership with other PLAION and Embracer Group studios.”
Fishlabs came under Embracer Group as a result of its acquisition of Deep Silver back in 2018. According to a report from 2020, the studio had 80 employees that year, though it is unknown now just how many remain after this cut. However, Fishlabs at least avoided a shutdown, something that did happen to several studios, including Volition.
The new job cuts follow many others from Embracer Group, as well as other studios. They include Embracer Group-owned Cryptic Studios, Amazon Games, Bungie, Frontier Developments, Digital Extremes, and others just in the past few months.