Gearbox confirms layoffs after sale by Embracer

Gearbox Entertainment has confirmed layoffs at the company, following the announcement of its sale by Embracer.

Staff affected by the cuts took to social media last week to reveal they had been laid off, just hours after it was announced that Embracer had agreed to sell Gearbox to Grand Theft Auto publisher Take-Two for $460 million. (£366 million).

Now, Gearbox has issued a statement about the layoffs, saying they are not “tied” to the development of Gearbox Software games. (Borderlands 4 was confirmed to be in “active development” last week.)


Cover image for YouTube video.Newscast: Why are there so many layoffs in the gaming industry?


Newscast: Why are there so many layoffs in the video game industry?

“Thank you for your thoughts and concern for The Gearbox Entertainment Company, as some reports of internal communication and actions are beginning to flow through public channels,” reads a statement sent to Eurogamer.

“As we strive to fulfill our mission to entertain the world, we are grateful that our talent and capabilities are of interest to you and your audience. The Embracer Group will continue to report on its restructuring program that affected some parts of Gearbox today that did not They are linked to the development of Gearbox Software games.

“Thank you for allowing us the space to remain focused on our people and our compassionate handling of the situation and managing the process, balancing our present duty and commitment to our future.”

It is unclear how many Gearbox Entertainment employees have been affected. Writing on social media platform X, public relations manager Jennifer Locke saying she was one of “countless others” who were told they had been fired.

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Embracer's “comprehensive restructuring program” began last year after the collapse of a $2 billion “major strategic partnership,” and has seen numerous studios suffer layoffs, while others have been sold or closed.

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