The remote-first video game development studio Lost Boys Interactive, under the Embracer Group, has announced another round of layoffs. Details of the announcement were posted on LinkedIn and affect employees working remotely across the U.S.
Layoff Announcement
Shaun Nivens, CEO of Lost Boys Interactive, stated that the decision was not taken lightly and was made only after exhausting all possibilities. The layoffs were conducted to respond to the changing trends in the video game market, which required the company to reconsider and change its operations to meet the demands of the business and its partners.
Management's Response
In his LinkedIn post, Nivens emphasized that the restructuring was necessary due to market changes that required the studio's operations to be revamped. He admitted that taking such steps was difficult but added that given the circumstances, these measures were unavoidable. Although the company has not provided specific details about the number of employees laid off, the fact that the studio operates remotely likely means that workers across multiple states are impacted.
Broader Context
Lost Boys Interactive has forged relationships with well-known game publishing companies such as Gearbox Software, Blizzard Entertainment, Visual Concepts, Zenimax Online and 2K, allowing them to participate in and complete several well-known game development projects. However, despite these achievements, the studio is now facing a reduction in its workforce as part of the broader challenges that Embracer Group and the gaming industry are facing. Embracer Group has been regularly in the news over the past year due to shutting down, downsizing, and laying off employees in most of its studios. The latest developments at Lost Boys Interactive further highlight the financial and operational difficulties encountered by many studios within the Embracer Group.
Thus, the latest layoffs at Lost Boys Interactive reflect the broader challenges faced by Embracer Group and the gaming industry in general. This decision was a necessary step in response to a changing market and the need for adaptation.
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