The CEO of Embracer made a public announcement stating that the company had concluded its widespread removal of workers across their numerous owned studios. However, this claim has been proven to be untrue as the megacorp continues to carry out layoffs and shut down studios. Most recently, a support studio for Diablo IV and Tiny Tina’s Wonderlands experienced additional layoffs, resulting in over half of the employees at the studio losing their jobs. A legal notice submitted to the Wisconsin state government revealed that a total of 139 workers were laid off just last week. The list of affected employees ranged from junior VFX artists to senior QA analysts, with even executive-level positions such as executive producer and creative director being impacted. Prior to the layoffs, the studio boasted a workforce of “200+” individuals, according to its website.
In a LinkedIn post, CEO Shaun Nivens of Lost Boys Interactive acknowledged the challenging nature of the decision to downsize the workforce, emphasizing that such choices are not made lightly and are only made after exploring all other alternatives. Nivens expressed the company’s commitment to supporting the affected employees during the transition. Lost Boys Interactive, as a co-development partner studio, is heavily influenced by the projects and priorities of its development clients, according to a statement released by the studio. The blame was placed on “shifting market conditions” for the necessity of the “difficult decision”. Lost Boys Interactive specializes in providing QA and art support, among other services, to client developers. The studio has previously collaborated with Amazon on the frontier MMO New World and on PlayerUnknown’s Battlegrounds. Following its acquisition by Gearbox and subsequently by Embracer in 2022, Lost Boys Interactive had already experienced job losses earlier in the year.
Nick Barone, an art director who had survived a previous round of layoffs at Lost Boys Interactive, expressed his sympathies for those affected. However, he himself was also among those laid off last week. In a post on LinkedIn, Barone conveyed his admiration for his former colleagues and offered his support for anyone needing recommendations or simply wanting to talk. The ongoing trend of job cuts within Embracer has led to the termination of more than 8% of their global workforce and the cancellation of potential projects such as a Red Faction sequel. These layoffs can be attributed in part to the repercussions of Embracer’s aggressive mergers and acquisitions strategy, as well as the prevailing culture of mass layoffs within the gaming industry in recent years. Despite assurances from the CEO of Embracer that the era of massive layoffs was over, it is evident that the company continues to implement such measures.
The recurring pattern of layoffs within the gaming industry, exemplified by the recent events at Lost Boys Interactive, sheds light on the harsh realities faced by employees in this sector. The false promises of job security and stability, coupled with the impact of market fluctuations and corporate decisions, have created an atmosphere of uncertainty for many workers. Companies must prioritize their employees’ well-being and provide more transparent communication regarding organizational changes to foster a more sustainable and supportive work environment within the gaming industry.
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