In a bid to alleviate their mounting debts following a string of ill-advised studio acquisitions, Embracer Group-owned developer New World Interactive has become the latest victim of layoffs. While the exact number of affected employees remains undisclosed, New World Interactive’s parent company, Saber Interactive, has confirmed the cancellation of an unannounced project. In a statement released today, Saber admitted to the restructuring changes within their subsidiary, resulting in unfortunate layoffs.
Saber Interactive has expressed its commitment to exploring opportunities to place the affected individuals into vacant positions within Saber itself. Furthermore, the company plans to offer severance packages to those impacted by the layoffs. According to Saber’s statement, only one of New World Interactive’s projects has been affected, while the team will continue working on their flagship military shooter, Insurgency: Sandstorm, along with various undisclosed games. The rumors suggesting the closure of New World Interactive as a whole have been categorically refuted by Saber.
The layoffs at New World Interactive are merely the latest consequences of Embracer Group’s audacious expansion strategy. Earlier this summer, the Swedish conglomerate laid off over 900 employees, a move prompted by the collapse of a $2 billion investment deal. Embracer Group had aggressively acquired over 200 game development projects, culminating in a precarious financial situation. In response, the company has been forced to initiate a series of “restructurings,” resulting in the closure of esteemed studios such as Red Faction creator Volition and substantial downsizing at Chorus developer Fishlabs.
Established in 2010, New World Interactive originated as a group of modders utilizing Valve’s Source Engine. Their breakthrough moment occurred with the release of Insurgency: Modern Infantry Combat, a Source conversion. The success of this project led them to expand it into a standalone shooter known as Insurgency in 2014. In 2018, the studio further impressed critics and players alike with the release of Insurgency: Sandstorm, a title admired for its immersive gameplay, particularly its exceptional sound design.
We extend our heartfelt wishes to all those affected by the layoffs at New World Interactive. It is disheartening to witness talented individuals face the repercussions of Embracer Group’s reckless decision-making. As the studio soldiers on, continuing their work on Insurgency: Sandstorm and other undisclosed projects, we hope that those affected will find new opportunities to showcase their skills and creativity.