Layoffs Hit Cryptic Studios Amid Embracer Restructuring

Update: A Cryptic Studios spokesperson has confirmed that the company is undergoing 'personnel changes' as part of Embracer's broader restructuring plan, which will see Cryptic operating under DECA Games moving forward. The exact number of affected employees remains undisclosed. The spokesperson stated, 'As part of Embracer Group's comprehensive restructuring, Cryptic Studios will now operate under DECA Games. This organizational change, coupled with our commitment to reducing costs, necessitates difficult personnel decisions, including parting ways with some team members.' The company has pledged to provide support and job assistance to those impacted, reaffirming its dedication to its free-to-play games and the associated communities. Originally, it was reported that Cryptic Studios, the developer behind Star Trek Online, appeared to be the latest Embracer-owned entity to face layoffs. While the extent of the redundancies was unclear, narrative director Winter Mullenix announced on social media that her tenure at the company had ended due to workforce reduction. Following the announcement of its restructuring program in June, Embracer has implemented layoffs across various subsidiaries, including Crystal Dynamics, Gearbox Publishing, and Zen Studios, in addition to shutting down Volition Games and Campfire Cabal. This move follows an aggressive merger and acquisition strategy that had increased the company's value nearly fivefold to approximately $9.4 billion. As of October 7, the estimated number of jobs lost in the industry due to layoffs and studio closures exceeded 6,100.