Embracer Group chairman Lars Wingefors has published an open letter to investors defending the company's mass layoffs and studio closures since 2023. He frames the cuts as a measured approach distinct from hard US-style headcount reductions, arguing that 'cost control does not get enough respect.' The letter follows the collapse of a $2 billion deal with Saudi-backed Savvy Games Group and comes as Embracer prepares another round of studio spinoffs. Wingefors acknowledges 'negative value creation' since 2020 but expresses confidence in the company's restructured future, while former board member Matt Karch has publicly defended him as naive but ultimately making tough necessary decisions.
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