Recently, it was announced that a support studio for Diablo IV and Tiny Tina’s Wonderlands, owned by Embracer, has faced further layoffs. Over half of the employees at the studio have lost their jobs, totaling 139 workers according to a legal notice submitted to the Wisconsin state government. The roles affected vary from junior VFX artists to senior QA analysts, including an executive producer and a creative director. This studio had over 200 employees before the recent job cuts.
The CEO of the studio, Shaun Nivens, addressed the layoffs in a post on LinkedIn, acknowledging the difficult decision to reduce the workforce. He mentioned that these decisions are never taken lightly and are only made after exploring all other options. The support studio, known as Lost Boys Interactive, provides QA and art support to client developers. They have attributed the layoffs to the “shifting market conditions” which forced them to make this tough decision.
Lost Boys Interactive has had a tumultuous history with job losses, especially after being acquired by Gearbox and subsequently Embracer. This is not the first time they have faced layoffs, with a previous round in January of this year. One of the artists who survived the earlier layoffs, Nick Barone, expressed his sympathy for those who were let go and acknowledged the impact it had on the team. However, he himself was laid off last week, further showcasing the ongoing layoffs at the studio.
Embracer, the parent company, has been under scrutiny for the widespread removal of workers across their various studios in recent years. They have laid off more than 8% of their global workforce and canceled projects like a potential Red Faction sequel. The CEO of Embracer had previously stated that the company’s layoffs were over, but the continued job cuts at their studios suggest otherwise. The layoffs are seen as a result of the aggressive mergers and acquisitions strategy pursued by Embracer.
The ongoing mass layoffs at Embracer’s studios reflect a larger trend in the games industry where companies are facing challenges and resorting to job cuts. The industry has been plagued by such layoffs in recent years, with many talented individuals losing their jobs due to market conditions and corporate decisions. The impact of these layoffs goes beyond just the individual employees, affecting the overall culture and morale of the gaming community.
The ongoing job cuts at Embracer’s studios, particularly at support studios like Lost Boys Interactive, highlight the challenges faced by employees in the games industry. The continuous layoffs and uncertain future of these studios raise concerns about the long-term stability and sustainability of the industry as a whole. It is imperative for companies like Embracer to prioritize their employees and ensure a supportive and stable work environment amidst the changing market conditions.
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