In another setback for industry employees, Embracer Group has revealed additional layoffs at Lost Boys Interactive, a subsidiary of Gearbox Software. Lost Boys Interactive, which provided support for the Borderlands spin-off Tiny Tina's Wonderlands, is now facing layoffs across multiple departments.
As a Swedish holding company, Embracer Group oversees a dozen subsidiary groups involved in various aspects of video games and media. The previous year witnessed Embracer initiating numerous large-scale layoffs and shutdowns, resulting in thousands of job losses by the end of 2023. Despite hopes for a cessation of cutbacks, Embracer has announced yet another studio facing layoffs.
Reported first by Windows Central, employees at Lost Boys Interactive have started sharing news about the studio being hit with significant layoffs. Lost Boys Interactive assisted Gearbox Software in developing Tiny Tina's Wonderlands, which achieved critical and commercial success. However, Embracer continues its cost-cutting endeavors, leading to layoffs across departments such as design, production, and quality assurance at the Tiny Tina developers. Although the exact number of employees expected to be laid off has not been officially confirmed, many affected individuals have begun sharing the news on professional platforms like LinkedIn and other social media sites. Following earlier rumors of Embracer's intention to sell Gearbox Software, these layoffs at co-developer Lost Boys Interactive have sparked concerns about the future of Borderlands and Gearbox among fans.
Industry Layoffs Continue Unabated
The recent announcement of additional layoffs by Embracer Group has taken many by surprise, although others had already observed the layoff trends from 2023 extending into this year. Following multiple rounds of workforce reductions in 2023, Unity has disclosed another series of layoffs, while Twitch and Discord are also contemplating extensive downsizing efforts. Many have questioned the necessity of these cost-cutting moves, considering that several of the companies announcing layoffs have been reporting record profits and decreasing expenses. Fans remain concerned about the future of numerous industries, fearing that these widespread layoffs will eventually impact consumers and the products and services they enjoy. Whether this will hold true for Lost Boys Interactive and Gearbox supporters remains to be seen, but for now, the layoff wave from last year is persisting into 2024.
From the technology and gaming sectors to content creation and social media, 2023 witnessed an almost unparalleled sequence of layoffs. Barely two weeks into 2024, more employees are receiving news of studio cutbacks and closures, prompting speculation about the future of various franchises and services. With Embracer losing its COO and now implementing more layoffs, supporters of Lost Boys Interactive and Gearbox Software are closely monitoring Embracer Group and its numerous subsidiaries.