Layoffs and closures are imminent at Lord of the Rings IP owner Embracer Group as the Swedish outfit unveils a restructure that will focus on “cost savings, capital allocation, efficiency and consolidation.”
In a letter delivered to staff this morning, Embracer Group CEO Lars Wingefors said it will be “painful to see talented team members leave,” as he unveiled an interim COO and CSO structure that will drive the changes home. An Executive Management team led by Matthew Karch and Phil Rogers will work to implement a review over the coming months, taking the lead on consolidation and structure. The number of layoffs at the circa-17,000 staff outfit were not detailed in the letter, which said it is “too early to give an exact forecast on this.”
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The restructure is being divided into different phases over the next nine months, focusing on “cost savings, capital allocation, efficiency and consolidation,” according to the letter, which said there will be “increased focus on accountability across the group.”
The first phrase will look at cost savings, the second will analyze specific actions and the third will be focused on internal consolidation.
“I’m proud of what we have built over the past years and we should acknowledge that we are heading into a solid year,” added Wingefors. “Embracer was founded on the values of trust, a long-term mindset and a desire to embrace different perspectives. As difficult as some of the decisions we will take over the coming weeks and months will be, we are doing this because we are confident we will emerge a stronger, more efficient company.”
The Swedish video game outfit generated headlines last year when it acquired Middle-earth Enterprises, a division of The Saul Zaentz Company, which owned the intellectual property catalogue and worldwide rights to The Lord of the Rings trilogy and The Hobbit by J.R.R. Tolkien. The company is releasing the likes of Hot Wheels Unleashed 2 and Warhammer 40,000 Space Marine 2 over the coming year.
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