Embracer CEO to Resign After Major Acquisitions and Layoffs

Lars Wingefors, founder of Swedish gaming giant Embracer, will step down as CEO. Phil Rogers, the current deputy CEO, will take over the role starting August 2025.

Embracer, which manages franchises like The Lord of the Rings, Dead Island, Metro, and Tomb Raider, has faced significant upheaval. Following major acquisitions, including Middle-earth Enterprises in 2022 and Gearbox, the creator of Borderlands, in 2021, the company encountered challenges when a $2 billion deal with Savvy Games Group collapsed. Since then, Embracer has closed Volition Games, the developer of Saints Row, sold Gearbox, parted ways with Saber Interactive, the studio behind Space Marine 2, and laid off thousands of employees. Wingefors described the backlash to these challenges as "painful."

In April 2024, Embracer revealed plans to divide into three independent entities: Asmodee Group, Coffee Stain & Friends, and Middle-earth Enterprises & Friends, aiming to empower each team with dedicated leadership and strategic focus. The restructuring led to 1,387 job losses and the cancellation of 29 unannounced projects. Recently, Embracer announced the spinoff of Coffee Stain Group and rebranded its The Lord of the Rings division as Fellowship Entertainment.

Wingefors will remain with Embracer as executive chair of the board, while current chair Kicki Wallje-Lund transitions to deputy chair. He will also serve as a director for Coffee Stain Group.

"As we enter this new chapter, I’m grateful for my time and the lessons learned as Embracer’s CEO," Wingefors said in a statement (courtesy of GamesIndustry.biz). "Though the journey hasn’t always been smooth, I’m immensely proud of our teams’ accomplishments, delivering remarkable experiences for gamers."

"This transition allows me to concentrate on strategic priorities, mergers and acquisitions, and capital allocation to drive Embracer’s growth. I’m confident in Phil’s leadership, having worked closely with him, and I look forward to collaborating to strengthen the business and create value in the years ahead."

Looking ahead, Embracer owns or controls over 450 franchises and operates subsidiaries such as THQ Nordic, Plaion, Coffee Stain, Amplifier Game Invest, DECA Games, Dark Horse, Freemode, and Crystal Dynamics – Eidos. The company has 73 internal game development studios and more than 7,000 employees.