Multiple reports suggest that there have been layoffs across Embracer-owned 3D Realms and Slipgate Ironworks. The number of employees affected by the layoff remains unknown at the time of writing this post. However, Scott Miller, the founder of 3D Realms who now heads indie publisher Apogee Entertainment, said he’d been told about half of the developers in the Danish studios were laid off.
“Several sources have told me this bad news,” Miller wrote on X. “Sorry to hear about another drop of the axe by Embracer Group, this time landing on Danish 3D Realms. A lot of people, including core devs, will be looking for work asap. Hopefully, they land jobs soon. This one hits me hard because I worked with the new 3DR from 2014 up until when they were bought out by Embracer 2.5 yrs ago.”
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Although 3D Realms was founded as Apogee Software in 1987, the company was rebranded in the mid-90s. In the years that followed, the company became famous for making first-person shooter games like Shadow Warrior and Duke Nukem 3D. The company struggled to release Duke Nukem Forever but failed leading to the layoff of several employees in 2009.
Eventually, 3D Realms stopped making games but continued to exist as a business entity. Danish company SDN Invest (now known as Ironworks) acquired 3D Realms in 2014. That was a game-changer that returned 3D Realms into active game development.
After Slipgate took over the ownership of 3D Realms, the company went ahead to publish games like Ghostrunner and Ion Maiden. In 2021, Embracer Group acquired 3D Realms and Slipgate and placed them under the control of its Saber Interactive division. That’s some twisted history, right?
3D Realms and Slipgate Ironworks are victims of Embracer restructuring
Embracer announced that it was restructuring its operations back in June. The restructuring was allegedly sparked by the failure of the group to secure a $2 billion funding deal from a Saudi Group. Since the start of the restructuring, several Embracer-owned studios have either announced layoffs or closures.
Saints Row maker Volition Games, Campfire Cabal, and Free Radical Designs are some of the studios that have been shuttered by the ongoing Embracer Restructuring. In its latest earnings call, Embracer confirmed that over 900 employees have been let go since the start of the restructuring.
While the number of employees affected by the current layoffs at 3D Realms and Slipgate Ironworks remains unknown, some of those affected have taken to social media to announce their departure from the studio and also solicit employment opportunities.
“Sadly, with a heavy heart I must say I’ve also been affected by the layoffs @SlipgateIronworks & 3DR,” wrote a former 3D artist who was working on Tempest Rising. “Currently looking for Fulltime work within the 3D gamedev space.”
Lead character artist Lars Bundvad-Åmodt also announced on X that he was part of those laid off saying, “Like many others, I have been affected by the layoffs @ Slipgate Ironworks/3D Realms, where I was lead character artist.”
Ethan (@ethangach), a senior reporter at Kotaku claimed he asked Embracer how many people were impacted by the layoffs at 3D Realms and Slipgate Ironworks. He shared a screenshot of the response that he received from Embracer who claimed that they will “not comment on specific studios”.
“Embracer will update the market on restructuring program progress on a regular basis, in connection with quarterly reports or otherwise as required by applicable legislation,” reportedly replied an Embracer spokesperson. “Our next quarterly report will be published on the 15th of February.”
At the time of writing this post, neither Embracer nor Saber Interactive have openly confirmed the layoffs or made public the number of employees that have been let go. PCGamer has a list of some of the employees who were let go at 3D Realms and Slipgate Ironworks.
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