In a financial report published earlier today, the Embracer Group spoke of an increase in net sales across 2023 that ended in ‘a stable quarter just above management expectations.’ However, that positivity was soon marred by comments made by the CEO, Lars Wingefors, who went on to explain that more divestitures and layoffs could be on the horizon.
In the last year or so, the Embracer Group has laid off a whopping 1,400 employees – around 8% of its global employee base (subsidiaries included), but the firm isn’t out of the woods yet.
The Endgame
In the financial report, it was stressed by Lars Wingefors:
As part of the restructuring program, Embracer still has a few larger structured divestment processes ongoing that could strengthen our balance sheet and further reduce capex. Processes are in mature stages. Certain companies might initiate restructuring before any divestment is announced. Our overruling principle is to always maximize shareholder value in any given situation.
It was referenced that Embracer is now in ‘the final stretch of the restructuring program’ and that efforts continue to ‘improve efficiency and cash generation’. On the topic of 1,400 employees losing their jobs over the last year, Wingefors promised that any decisions were ‘carried out with compassion, respect, and integrity towards those affected,’ before moving on to talk about the future of the company.
There were mentions of a positive return on investments made across the board as the firm lays ‘a strong foundation’ for what’s next to come.
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