Insurgency developer New World Interactive, a subsidiary of Saber Interactive and owned by Embracer Group, has recently laid off staff as part of the conglomerate’s efforts to reduce their debts. The exact number of employees affected has not been disclosed, but Saber Interactive has confirmed that one unannounced project has been cancelled. In a statement, Saber expressed their regret over the layoffs and mentioned their plans to fill open roles within Saber with the affected individuals whenever possible. Severance packages will also be provided to those impacted.
Despite the layoffs, New World Interactive will continue working on their flagship military shooter, Insurgency: Sandstorm, along with several other unannounced games. This suggests that while there have been setbacks, the studio is still actively pushing forward with their existing projects and future endeavors.
Embracer Group, the parent company of New World Interactive, has been on a path of debt reduction after engaging in a series of studio acquisitions that were sometimes viewed as reckless. This conglomerate, based in Sweden, faced significant financial challenges after the collapse of a $2 billion investment deal. As a result, over 900 employees were laid off during the summer, putting several game development projects in jeopardy.
The financial difficulties faced by Embracer Group have not only affected New World Interactive but also other studios within their portfolio. Red Faction creator Volition was closed, Chorus developer Fishlabs had their workforce reduced by half, and Mythforce studio Beamdog saw two dozen staff members laid off. These “restructurings” have been necessary for Embracer Group to alleviate their debt burden.
New World Interactive has an interesting background, having started as a group of modders working with Valve’s Source Engine in 2010. Their breakout release, Insurgency: Modern Infantry Combat, began as a Source engine conversion and later evolved into a standalone shooter called Insurgency in 2014. The success of Insurgency led to the development of Insurgency: Sandstorm in 2018, which garnered positive reviews, especially for its immersive sound design.
Our thoughts go out to all the employees at New World Interactive who have been impacted by these layoffs. It is always disheartening to see talented individuals lose their jobs due to financial difficulties within the industry. However, there is hope for the studio’s future as they continue their work on Insurgency: Sandstorm and other projects. As Embracer Group strives to overcome their financial challenges, it is essential that they prioritize a sustainable and responsible approach to studio acquisitions and debt management.
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