Earthquake at Embracer Group: Lars Vingefors steps down as CEO after mass layoffs and studio closures

Lars Wingefors, CEO of Embracer Group, who has presided over thousands of job cuts and a significant number of studio closures after a tumultuous few years for the company, has announced that he is stepping down. However, Wingefors will not be severing ties with Embracer and will instead become executive chairman of the board.

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"While the path hasn't always been straightforward, I am incredibly proud of the achievements made possible by our talented teams that have created incredible experiences for gamers," Wingefors said in a statement about his role change. "This new phase allows me to focus on strategic initiatives, MA and capital allocation, ensuring Embracer's continued growth and success. I am more convinced than ever that the best is yet to come."

Phil Rogers will assume the vacant CEO position from 1 August. Rogers currently serves as Embracer's deputy CEO and CEO of Crystal Dynamics.

Wingefors' time as CEO has been tumultuous, to say the least. He oversaw a rapid period of expansion for Embracer that saw the company embark on a massive acquisition spree, taking over companies such as Gearbox, Saber Interactive, Crystal Dynamics and others, including the €2.75 billion purchase of board game publisher Asmodee, over the course of several years. However, the fragility of this expansion became apparent after a $2 billion deal with the Saudi government-funded Savvy Games Group collapsed in dramatic fashion in 2023.

Following the collapse of the deal, Wingefors announced a "comprehensive restructuring programme" that ultimately resulted in thousands of employees losing their jobs, while a significant number of studios were either sold or closed entirely. For example, Saints Row developer Volition closed its doors in August 2023, while the revived Free Radical Design, which was working on a new TimeSplitters project, was shut down just a few months later. Shortly after, Gearbox was sold to Take-Two Interactive, while Saber Interactive went its separate way. Further layoffs have since been announced, including at Eidos-Montréal and Crystal Dynamics.

Source: Embracer