New World Interactive Suffers Embracer’s Restructuring; Codemasters Also Hit by Layoffs at EA

Yesterday, Nick Calandra first circulated the rumor that the Embracer Group had closed down New World Interactive. The rumor was then corroborated by Insider Gaming, although a Saber Interactive spokesperson later clarified the studio was being restructured, not shut down.

Saber can confirm there have been restructuring changes involving our New World Interactive subsidiary. This reorganization has unfortunately resulted in layoffs at the studio. We are working to fill existing open roles within Saber with individuals affected by these changes wherever feasible and we will be providing severance packages to those employees impacted. Development will continue on Insurgency: Sandstorm, as well as unannounced future projects.

The Denver-based game development studio was founded in 2010 by Canadian Army veteran Andrew Spearin and Jeremy Blum. The two had previously developed Insurgency: Modern Infantry Combat, a total conversion mod for the Source engine.

New World Interactive continued to make tactical shooter games with 2014’s Insurgency, 2017’s Day of Infamy, and lastly, 2018’s Insurgency: Sandstorm. The Embracer Group eventually acquired New World Interactive in August 2020 via its Saber Interactive operating group.

This is only the latest chapter in this year’s Embracer Group layoffs, following the total shutdown of Volition and Campfire Cabal, not to mention minor layoffs occurring at studios like Crystal Dynamics, Beamdog, and more. Even Gearbox was rumored to be available for sale.

The Embracer Group is far from the only game company to have performed layoffs this year. EA’s BioWare was also hit in late August, and today, even Codemasters (maker of F1 23 and EA Sports WRC) has been affected. Here’s a statement relayed to IGN by an EA spokesperson:

Our business is constantly changing as we strive to deliver amazing games and services that keep our players engaged, connected, and inspired. At times, this requires the company to make small-scale organizational changes that align our teams and resources to meet evolving business needs and priorities. We continue to work closely with those affected by these changes, providing appropriate support throughout this process.

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