Embracer layoff streak continues, with 3D Realms and Slipgate Ironworks latest to be affected


3D Realms and Slipgate Ironworks are the latest studios to be affected by Embracer’s restructuring program.


While Embracer is yet to publicly comment on these particular layoffs, Eurogamer understands the news to be accurate, while several team members have said they have been affected.


Newscast: Why are there so many games industry layoffs?


3D Realms founder Scott Miller shared his sadness on X (formerly Twitter). “Several sources have told me this bad news… Sorry to hear about another drop of the axe by Embracer Group, this time landing on Danish 3D Realm,” he wrote.


“A lot of people, including core devs, will be looking for work asap. Hopefully they land jobs soon. This one hits me hard because I worked with the new 3DR from 2014 up until when they were bought out by Embracer 2.5 yrs ago.”


Others have also shared news of Embracer’s most recent wave of redundancies. “For Christmas this year, I got laid off!” shared level and sound designer Michael Markie.


Lead character artist Lars Bundvad-Åmodt, whose work you can see in the header image of this article, is also one of the many seemingly affected, posting: “Bad news times”.

In a statement shared with Eurogamer, an Embracer representitive said: “On the 13th of June, Embracer announced a comprehensive restructuring program for FY 23/24, running until end of March 2024. The program includes a series of initiatives that will focus on cost savings, capital allocation and operational and financial efficiency measures. Part of those initiatives could be the closing of studios and termination of projects. Each process will be managed locally on operative group level with focus on informing affected employees first, and on group level we will not comment on specific studios.”


“Embracer will update the market on restructuring program progress on a regular basis, in connection with quarterly reports or otherwise as required by applicable legislation. Our next quarterly report will be published on the 15th of February.”


Embracer acquired 3D Realms and Slipgate in 2021. As mentioned above, earlier this year, the Swedish conglomerate announced a “comprehensive restructuring program“, which it said would result in studio closures, project cancellations and job losses. This restructuring was reportedly necessary after a proposed $2bn partnership collapsed.



In the time since, multiple studios have been impacted, including the likes of Tomb Raider developer Crystal Dynamics, Pinball FX developer Zen Studios and many more. In November, Embracer co-founder and CEO Lars Wingefors confirmed 900 employees were laid off in the past financial quarter, representing five percent of the workforce.

Also last month, Embracer’s then chief operating officer announced he was leaving the company. Egil Strunke said he had “reached a checkpoint” in his career, adding it had been a “rough” year for Embracer.


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