Embracer Group has ended its nine-month long restructuring process after its latest deal to sell most of Gearbox to Take-Two Interactive. Gearbox is also potentially the latest studio to shed some jobs after the acquisition.
The restructuring came after a deal worth $2 billion fell through for Embracer and after the company went on an acquisitions spree for a few years. Since last June’s declaration, the company has made a series of major, often painful cuts, laying off an estimated 1,400 people, selling off several studios, and closing others. Yesterday, the company confirmed the rumors that it was selling Gearbox, moving most of that company’s assets, along with key IPs like Borderlands, Homeworld, Risk of Rain, Brothers in Arms, and Duke Nukem, to Take-Two in a $460 million stock deal. Embracer kept certain Gearbox subsidiaries, including Cryptic Studios, which revealed extensive roadmaps last week for its current MMORPGs.
According to a new report, some employees began posting on social media that they had been laid off following the deal. Among them were former PR manager Jennifer Locke, who shared “Along with countless others, I've just been informed I've been laid off at Gearbox. It really was a dream come true working on this team, and I'm incredibly grateful for my time here”. A Gearbox spokesperson confirmed the layoffs to Kotaku with a statement that emphasized that “Embracer Group will continue to report on their restructuring program that impacted some parts of Gearbox today that are not tied to the development of Gearbox Software games”. Among those reporting layoffs, in addition to Locke, are customer support employees, and other non-dev positions.
just a follow up on this: yeah, me and all my people were caught up in the Gearbox layoffs. I'll do something more formal on Monday, but I'm sorting myself out right now.thank you to those who have reached out, love you all.
— andrew ??? (@coulombe) March 29, 2024
As for Embracer, they certainly have declared their big restructuring process to be over. In an investor call about the Gearbox divestment deal, CEO Lars Wingefors said (as quoted by Rock Paper Shotgun) this sale brought that chapter to a close and, despite being approached by potential buyers at this point, the rest of what remains is “not for sale, because they’re a very important part for the group and for the shareholders of the group going forward”.
