Embracer Group, the Swedish conglomerate, has announced layoffs at Beamdog Studios, the developers of Baldur’s Gate: Enhanced Edition and Mythforce. This comes less than two years after Embracer acquired the studio through its subsidiary, Aspyr Media. According to former employees of Beamdog who posted on LinkedIn, 26 members of the development team, including producers, artists, and QA staff, have been laid off.
The news of the layoffs was confirmed by individuals affected, such as former Beamdog QA manager Erin McIntyre and associate graphic artist Jill Hollet. Hollet expressed her gratitude to Beamdog for the opportunity to work in the industry but acknowledged the difficult decision made by Embracer Group to downsize as part of its ongoing restructuring initiative.
Embracer Group has been actively restructuring its operations in an effort to become “highly cash-flow generative.” The company plans to move away from its previous heavy-investment mode and streamline its portfolio of studios, publishers, and franchises. The CEO of Embracer, Lars Wingefors, stated that some studios would be divested or closed, and low-return development projects would be terminated or paused to maximize the company’s scale and capabilities.
These recent layoffs at Beamdog Studios are part of a series of restructuring efforts undertaken by Embracer Group. The company has already closed notable studios like Volition and Campfire Cabal, and layoffs have occurred at other companies including Gearbox Publishing and Rainbow Studios. Additionally, there are reports suggesting that Embracer is considering the sale of Gearbox Entertainment, the developer behind the Borderlands franchise, just two years after acquiring it for $1.38 billion.
Game Developer has reached out to Embracer Group for comment on the Beamdog layoffs, and further updates on the situation are pending.
Definitions:
– Beamdog: A game development studio known for titles such as Baldur’s Gate: Enhanced Edition and Mythforce.
– Embracer Group: A Swedish conglomerate that acquires and operates companies in the gaming industry.
– Aspyr Media: A subsidiary of Embracer Group that handles the acquisition of game development studios.
– QA: Quality Assurance, a department responsible for testing and ensuring the quality of software or games.
Sources:
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