Eidos Montreal, the Canadian video game developer, has officially confirmed the termination of 97 employees across various departments. This decision aligns with the broader cost-cutting measures implemented by the Embracer Group, which has also resulted in the cancellation of the highly anticipated Deus Ex project, according to previous reports.
On Monday, the company made the announcement on X (formerly Twitter), citing the global economic landscape, industry challenges, and Embracer’s comprehensive restructuring as the driving factors behind the layoffs.
Bloomberg reported insights from an anonymous source, revealing that the scrapped Deus Ex project was originally slated to enter full production this year. However, Eidos Montreal has shifted its focus to the development of an entirely new franchise instead.
Embracer Group, which acquired the beloved Deus Ex series in 2022, has been undergoing a series of layoffs and game cancellations. The Deus Ex franchise, known for its popularity with over 14 million units sold worldwide, became a casualty of Embracer’s downsizing plans announced the previous year. The studio faced a substantial workforce reduction, losing nearly 20% of its staff. Consequently, the two-year-long production of the Deus Ex game came to an abrupt halt, with the remaining team now dedicated to creating an original game franchise.
Embracer Group AB, a Swedish video game company, has not been spared from a series of strategic changes. In addition to the closure of Free Radical Design (TimeSplitters’ developer) and Volition (Saints Row developer), Embracer has reportedly explored the sale of Gearbox, the developer behind Borderlands. The company’s second-quarter layoffs in 2023 affected more than 900 employees, extending to Crystal Dynamics, Beamdog, and New World Interactive in December 2023. Unfortunately, this trend of layoffs has extended into 2024, impacting notable entities such as Microsoft, Unity, Riot, and Twitch, signaling a challenging period for the industry with no apparent end in sight.