Nov 30, 2023

Layoffs at Desic and Zen Studios in Hungary Parent company Embracer Group continues cutbacks

Hungarian studios Digic and Zen Studios, owned by Swedish media conglomerate Embracer Group, have suffered layoffs by their parent company, which has been engaged in a massive five-month cost-cutting campaign.

Digic, acquired by Embracer in 2021, produces cinematics and trailers for video games such as Assassin's Creed Mirage, Rainbow Six Siege, and Elden Ring. The company has also produced animation for Netflix's animated science fiction anthology series Love, Death + Robots. According to Forbes Hungary, the job cuts by the Embracer Group resulted in the layoff of 35 employees, or about 10% of the studio's workforce.

"Changes in the market, economic challenges and long-term arrangements for hybrid productions during this period have necessitated a review of our operations," Digic said in a statement.

A spokesperson for Embracer said, "Digic intends to increase the flexibility of the company's operations and increase the percentage of freelance professionals by continuing to hire some of its relevant colleagues on a project basis, either as fixed-term contracts or freelance subcontractors." He added.

Zen Studios is best known for developing Pinball FX and other licensed pinball games; according to Gamesindustry.biz, about 30 of the studio's employees were laid off in October, representing almost half of the studio's workforce.

Other cuts at Embracer in the past few months include layoffs at Crystal Dynamics, Beamdog, and Gearbox Publishing (also reported for sale), and the closing of Saints Row developer Deep Silver Volition A recent VGX report confirmed that Plion, a subsidiary of Embracer, will likely shut down Free Radical Design, developer of TimeSplitters, on December 11.

According to Embracer Group, 900 employees, or 5% of its worldwide workforce, were laid off in the latest quarter ending September 30.