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More layoffs at another Embracer Group studio

More layoffs at another Embracer Group studio

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While New World Interactive will not shut down completely, Embracer has confirmed its restructure of the company will involve layoffs.

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Screenshot from Insurgency: Sandstorm featuring two soldiers in gas masks pointing rifles at enemies off-screen.
Image: New World Interactive

New World Interactive, developer of Day of Infamy and the Insurgency series, is the next studio affected by Embracer Group layoffs. Earlier today, there were unconfirmed rumors that Embracer Group had completely shuttered the studio, but in an email to The Verge, New World’s parent company, Saber Interactive, clarified the studio would remain active.

“There have been restructuring changes involving the New World Interactive subsidiary,” wrote Arman Teimouri, head of public affairs, in an email to The Verge. “Unfortunately, this reorganization has resulted in layoffs at the studio.” Saber did not share how many or what percentage of employees were let go.

The statement also said that the company was working to place affected employees elsewhere within Saber Interactive and that development would continue on Insurgency: Sandstorm as well as other as yet unannounced projects.

Studios under the Embracer umbrella have been devastated by layoffs and project cancellations. Earlier this year, the Swedish holding group failed to secure a $2 billion investment, reportedly from the Saudi-owned Savvy Games Group, after Embracer had gone on a buying spree, gobbling up game studios, popular game franchises, Dark Horse Media, and the IP rights to The Hobbit and Lord of the Rings.

Immediately after the deal collapsed, Embracer announced that it would undergo restructuring involving the shuttering of some studios, layoffs at others, and project cancellations galore. The company has already closed Campfire Cabal and Saints Row developer Volition Games and had layoffs at Crystal Dynamics and Beamdog. The company is also looking to sell Borderlands developer Gearbox Entertainment and could possibly close TimeSplitters developer Free Radical Design. Overall, over 900 employees have been let go from the company, not including the layoffs today at New World Interactive.