Embracer CEO Steps Down After Layoffs, Studio Closures

Lars Wingefors, founder of Embracer Group, will transition from his CEO role at the Swedish gaming conglomerate. Current deputy CEO Phil Rogers is set to take the helm beginning August 2025.

The company behind blockbuster franchises like The Lord of the Rings, Dead Island, Metro, and Tomb Raider has weathered significant turbulence recently. Following major acquisitions such as Middle-earth Enterprises and Gearbox Entertainment (creators of Borderlands) in 2022 and 2021 respectively, Embracer faced financial instability after a planned $2 billion partnership with Savzy Games Group collapsed. Subsequent restructuring led to studio closures including Volition Games (Saints Row), Gearbox's sale, Saber Interactive's separation (developing Space Marine 2), and widespread layoffs. Wingefors acknowledged the difficult period, describing criticsm of their strategic shifts as "deeply challenging."

April 2024 marked Embracer's radical reorganization into three independent entities: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends - aimed at empowering each division's autonomous growth. This corporate reshuffle resulted in 1,387 job cuts and cancellation of 29 unrevealed projects. Most recently, the company disclosed plans to establish Coffee Stain Group as a standalone entity while rebranding its Tolkien-focused division as Fellowship Entertainment.

Rather than departing completely, Wingefors will assume the executive chairman position, with current board chair Kicki Wallje-Lund transitioning to deputy chair. He'll additionally serve on Coffee Stain Group's board.

"Transitioning from CEO, I reflect on Embracer's journey with gratitude," Wingefors stated (via GamesIndustry.biz). "Though our path encountered challenges, our teams' creativity has delivered extraordinary gaming experiences. This evolution enables my focus on strategic growth, M&A opportunities, and capital strategy to propel Embracer's next chapter."

Rogers, Wingefors' designated successor, earned praise for their collaborative track record: "Phil's leadership credentials are unquestionable. Our continued partnership will drive sustained value creation across Embracer's ecosystem."

The restructured conglomerate maintains an enviable portfolio - overseeing 450+ gaming IPs through subsidiaries including THQ Nordic, Plaion, Dark Horse Media, Crystal Dynamics-Eidos, and others. Its 73 development studios employ more than 7,000 industry professionals worldwide.