In the midst of Embracer Group's ongoing restructuring, German video game developer Black Forest Games, a subsidiary of THQ Nordic, is reportedly preparing to lay off approximately 50% of its workforce. This follows the announcement from two other Embracer-owned studios, 3D Realms and Slipgate Ironworks, in December, where over half of their employees faced layoffs, contributing to a total of around 1000 layoffs in the latter half of 2023.

Black Forest Games, known for its development of the Cold War era alien invasion remakes, Destroy All Humans, and the upcoming darker take on the franchise, Teenage Mutant Ninja Turtles: The Last Ronin, was acquired by THQ Nordic in 2017. According to Kotaku, the studio informed its staff on January 24 of the impending layoffs and pledged to provide further details the following week. It was also revealed that the majority of the upper management, including creative directors and managers, would be unaffected by the layoffs. The company's website indicates a workforce of over 100 employees, many of whom possess more than 20 years of experience. Despite this, Embracer Group, THQ Nordic, and Black Forest Games have not issued any official statements regarding the situation.

Embracer Group has been actively acquiring renowned studios, such as Crystal Dynamics, Eidos Montreal, and Square Enix Montreal, while simultaneously undergoing a restructuring process since June. The latter aimed to alleviate a $1.51 million debt, resulting in game cancellations and workforce reductions. The fate of highly-anticipated games, including the Star Wars: Knights of the Old Republic remake, remains uncertain.

The video game industry has witnessed widespread layoffs, with notable developers like Bungie and Rockstar also affected. Kotaku reported a record-breaking number of approximately 3900 staff being impacted in January alone, surpassing last year's total layoffs in the gaming sector.