Embracer Group faces layoffs, closures, and cancellations amidst restructuring.

Embracer Group, the owner of the intellectual property catalog for The Lord of the Rings and The Hobbit, has announced a restructuring program that includes cost cuts, layoffs, and the sale or closure of some gaming studios. The company plans to reduce third-party publishing and focus on internal IP while decreasing spending on non-development costs. The headcount of 17,000 will be cut down, but the exact number of layoffs is unknown. The restructuring will transform the company into a highly cash-flow generative business with lower net debt and higher margins in the PC/console segment.