Embracer Group Faces Challenges But Remains Resilient
In 2023, Embracer Group encountered difficulties, including the cancellation of a major publishing deal and poor financial results in Q4. As a result, the company announced a restructuring program in June. However, CEO Lars Wingefors expressed determination to weather the storm and make necessary decisions.
Restructuring and Downsizing
Embracer Group is taking steps to restructure and downsize certain teams in order to become more cost-efficient. Wingefors acknowledged that these decisions are challenging but emphasized that the company is confident in delivering on its targets for the fiscal year.
Massive Expansion in 2022
Despite the difficulties, 2022 was a year of significant expansion for Embracer Group. The company made high-profile acquisitions, such as Square Enix’s Western assets, including popular series like Legacy of Kain and Tomb Raider. Additionally, the acquisition of JRR Tolkien’s literary works further solidified the company’s success.
Continued Struggle
While Embracer Group experienced a 47% year-on-year increase in net sales in August, it continues to face challenges. Wingefors acknowledged that tough decisions will need to be made in order to improve cost-efficiency.
Exploring Divestment
Following the successful sale of Tomb Raider, Wingefors mentioned the possibility of divesting more high-value assets. He noted the presence of a vibrant market with numerous potential buyers, including financial sponsors and industry players. Embracer Group aims to run proper processes for these assets to optimize their value.
Supporting Affected Employees
Despite the restructuring, Embracer Group aims to assist employees who may be affected by finding new positions, even if it means moving on from the company. The company prioritizes the well-being of its staff.