Hungary’s Digic and Zen Studios Suffer Layoffs As Parent Company Embracer Group Continues To Make Cuts

Hungarian studios Digic and Zen Studios, both owned by Swedish media conglomerate Embracer Group, have suffered layoffs imposed by the parent company, which is five-months into a major cost-cutting campaign.

Digic, which was purchased by Embracer in 2021, produces cinematics and trailers for video games such as Assassin’s Creed Mirage, Rainbow Six Siege, and Elden Ring. The studio also did animation work on Netflix’s animated sci-fi anthology series Love, Death + Robots. According to Forbes Hungary, 35 studio employees, or about 10% of its workforce, were laid off in the cuts imposed by Embracer Group.

“Due to the market changes of the past period, economic challenges, and the long-term arrangement for hybrid work, it has become necessary to review our operation,” Digic said in a statement.

An Embracer spokesperson added, “Digic would like to continue to employ some of the relevant colleagues on a fixed-term contract or on a project basis as freelance subcontractors, thus increasing the flexibility of the company’s operation and the proportion of freelance experts.”

Zen Studios is best known for developing Pinball FX and other licensed pinball games. According to Gamesindustry.biz, around 30 employees at the studio were let go in October, representing nearly half of the studio’s workforce.

Other Embracer cuts over the past several months include layoffs at Crystal Dynamics, Beamdog, Gearbox Publishing (which is also reportedly up for sale), and the closure of Saints Row developer Deep Silver Volition. In a recent report from VGX, Embracer subsidiary Plion confirmed it will likely close TimeSplitters developer Free Radical Design on December 11.

According to Embracer Group, 900 of its employees, or 5% of its global workforce, were laid off during its latest quarter ending September 30.