Eidos Montreal Faces Further Layoffs Amidst Embracer's Continued Restructuring

Eidos Montreal, a renowned game development studio under the ownership of Embracer Group, has reportedly implemented another wave of workforce reductions. Numerous former employees have taken to professional networking platforms to confirm their departure from the company last week. This development follows a series of similar actions, painting a challenging picture for the studio and its parent organization.

Gaming Industry Turmoil: Eidos Montreal's Latest Layoffs

Last week, Eidos Montreal, a significant entity within the vast Embracer Group, reportedly executed another round of layoffs, affecting a considerable number of its workforce. Individuals across various departments, including presentation director Timothé Lapetite, have publicly acknowledged their termination. Lapetite, in a social media post, indicated that these separations were due to broad industry circumstances, impacting at least a dozen positions.

According to reports from Insider Gaming, these cutbacks have far-reaching implications, with many of the studio's current projects reportedly being canceled. Eidos Montreal is now said to be primarily focusing on co-development initiatives, such as "Grounded 2" alongside Obsidian, and the "Fable" reboot in collaboration with Playground Games. Official statements regarding these layoffs have yet to be released by either Eidos Montreal or the Embracer Group.

This recent development is not an isolated incident but rather the second instance of layoffs at Eidos Montreal in 2025, succeeding an approximate reduction of 75 employees in March. Earlier in 2024, the studio had already dismissed 97 staff members and halted the development of an unannounced "Deus Ex" title.

These ongoing workforce adjustments at Eidos Montreal are indicative of the broader financial difficulties experienced by the Embracer Group. The parent company encountered significant setbacks in 2023 following the collapse of a substantial $2 billion financing agreement. This event triggered widespread studio closures and extensive layoffs, with nearly 1,400 employees affected by February 2024, a figure that has continued to climb.

Despite Embracer's announcement in March 2024 that its restructuring phase had concluded after the sale of Gearbox to Take-Two Interactive, layoffs and closures have persisted. Notably, Crystal Dynamics, a partner studio within Embracer's operational framework, has also undergone three rounds of layoffs in 2025 alone, underscoring the pervasive nature of these challenges within the group.

The current situation at Eidos Montreal and within the Embracer Group highlights the volatile nature of the video game industry, where even established studios face severe financial pressures and organizational overhauls. It underscores the critical importance for developers to adapt to evolving market demands and for parent companies to maintain robust financial stability in an increasingly competitive landscape.