Posted in: Comics, Comics Publishers, Crystal Dynamics, Dark Horse Comics, Games, Gearbox Publishing, Plaion, Saber Interactive, THQ Nordic | Tagged: dark horse, Enhancer

Embracer Group Layoffs Not Expected To Affect Dark Horse Comics

Sources tell Bleeding Cool that Dark Horse Comics will not be affected by cuts being made by its owners, Embracer Group.

Embracer Group CEO Lars Wingefors has announced the news that the Swedish company, which owns Dark Horse Comics among many others, will be laying off staff across the company as they restructure as a result of losing a $2 billion deal. However, Dark Horse senior sources tell Bleeding Cool that Dark Horse Comics is a self-funding unit within the Embracer Group and so will not be affected by these changes coming down. Reports so far show that the impact will be felt by the games studios.

Matthew Karch who has just been appointed interim Chief Operating Officer, and Phil Rogers who has also just been appointed interim Chief Strategy Officer, will co-lead the program planning and implementation. "Today we announce a comprehensive restructuring program that will enable us to realize untapped potential in Embracer Group and better optimize the use of our resources. Across the group, we are now initiating multiple actions to strengthen our cash flow generation and leverage our portfolio of IPs to become a stronger company and setting out on a stable future to build even greater games to the benefit of gamers and fans across the globe ", said Wingefors.

Plans include the restructuring will see a reduction of company debt and cutting overhead costs by 10% every year, the closing of studios and binning of projects will be almost entirely on games have not yet been announced , and that "all announced significant releases will still be released as planned". A more comprehensive, centralized process for game investment and progress review, reduction of investments into external development in favour or owned or controlled IP, rather than increasing of external funding of internally developed, large-budget games and the like. No mention of the comic book or merchandise lines. But Embracer Group is moving from a "current heavy-investment-mode" to a "highly cash-flow generative business this year". No more buying things like Middle-Earth Enterprises, who own the novel rights to The Lord of the Rings and The Hobbit, for example. And this will lead to being able to " generate growth in profitability with less business risk and with higher margins in the PC/Console segment over the coming years."

With its head office based in Karlstad, Sweden, Embracer Group owns THQ Nordic, PLAION, Coffee Stain, Amplifier Game Invest, Saber Interactive, DECA Games, Gearbox Entertainment, Easybrain, Asmodee, Dark Horse, Freemode and Crystal Dynamics – Eidos and has internal game development studios and more than 16,600 employees in more than 40 countries. For now. Wingefors says "Embracer currently engages close to 17,000 people and while that number will be lower by the end of the year, it is too early to give an exact forecast on this."

"It is painful to see talented team members leave. Our people are what make up the very fabric of Embracer. I understand and respect that many of you will be worried about your own position and I don't have all the answers to all questions." And that "the actions will include, but not be limited to, closing or divestments of some studios and the termination or pausing of some ongoing game development projects. It will also include decreased spending on non-development costs such as overhead and other operating expenses. We will reduce third-party publishing and put greater focus on internal IP and increase external funding of large-budget games."

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