Embracer Group's Layoffs: Impact on 3D Realms and Slipgate Ironworks

History of 3D Realms and Slipgate Ironworks

3D Realms and Slipgate Ironworks, two Danish developers owned by an Embracer Group subsidiary, have been hit with layoffs. The workforce cutbacks are just the latest in a long string of cost-cutting efforts at Embracer, which most recently resulted in TimeSplitters developer Free Radical Design shutting down. Founded in the late '80s as Apogee Software Productions, 3D Realms Entertainment is best known as the creator of the Duke Nukem franchise. While it was originally a Texan company, it was acquired by Denmark-based Slipgate Ironworks—then called Interceptor Entertainment—and relaunched under its current name in 2014 following a period of financial difficulties stemming from its inability to complete Duke Nukem Forever. 3D Realms and the rest of Slipgate Ironworks were acquired by Embracer subsidiary Saber Interactive in summer 2021, together with five other companies.

Twitter article posted by Scott Miller - Apogee/3DR Founder

Impact of Layoffs on 3D Realms and Slipgate Ironworks

Two and a half years later, the companies are being hit with major layoffs. That's according to 3D Realms founder Scott Miller, who has recently taken to Twitter to reveal that many people from his former studio will be momentarily out of a job due to the latest wave of cutbacks at Embracer. As for the extent of this purported workforce reduction, the industry veteran said that 'at least half' of Slipgate and 3D Realms' staffers will see their roles eliminated as part of the move, citing sources familiar with the matter. Another corroborating report on the matter comes from 3D Realms Lead Composer Michael Markie. 'For Christmas this year, I got laid off,' Markie wrote in a December 14 tweet, asking anyone potentially looking for a level or audio designer to contact him. The aforementioned tweet from Miller saw the 3D Realms founder reveal that his current company, Apogee Entertainment, will be looking to hire 'at least' two or three people from the laid-off staff. Based on publicly available data and Embracer's financial disclosures, the whole of Slipgate Ironworks had under 200 employees as of mid-2023. Between that and Miller's insight into the current ordeal, the December layoffs have ostensibly affected dozens of people. It remains to be seen how this seemingly significant workforce reduction will affect Slipgate's existing projects, like the real-time strategy Tempest Rising, which is set to release in 2024.

Twitter article posted by Markie

Broader Implications for Embracer Group and the Gaming Industry

Back when it first announced its large-scale cost-cutting efforts, Embracer said it would be canceling multiple games and close a number of studios as part of the initiative. However, it also stated that the restructuring would be completed by October, which apparently hasn't come to pass if more people are still losing their jobs two months later. With this latest round of cutbacks, Embracer has laid off approximately 1,000 people in the second half of 2023.