In the wake of Embracer's "comprehensive restructuring programme," New World Interactive, the studio behind popular games Insurgency and Day of Infamy, has confirmed that it will be implementing layoffs. The news comes after reports emerged about the studio's closure.

New World Interactive was acquired by Embracer in 2020 through its subsidiary Saber Interactive. In a statement shared with Eurogamer, Embracer acknowledged the restructuring changes within its subsidiary, stating that it has resulted in staff reductions at New World Interactive.

The exact number of employees affected and the specific departments impacted have not been confirmed at this time. Eurogamer has reached out to Saber Interactive for further clarification on the status of New World Interactive.

Embracer reassured that Saber is actively working to fill existing open positions within the company with those affected by the layoffs. The affected employees will also receive severance packages as part of the company's support during this transitional phase.

Notably, Embracer emphasized that despite the layoffs, development will continue for their popular title, Insurgency: Sandstorm, along with undisclosed future projects.

This latest round of layoffs at New World Interactive is part of Embracer's broader restructuring efforts, as outlined in their financial report for the second quarter of 2023/24. Embracer's CEO, Lars Wingefors, confirmed that approximately 900 employees were laid off between July and September. This included personnel reductions at Crystal Dynamics, the studio behind Tomb Raider, and Beamdog, the developer of Mythforce.

Recently, Embracer evaluated Timesplitters developer Free Radical, raising concerns about the studio's potential closure. Another subsidiary, Fishlabs, owned by Plaion which is, in turn, owned by Embracer, also experienced a wave of layoffs impacting around 50 employees, as part of the ongoing restructuring process.

The game industry as a whole has been grappling with layoffs, with news earlier today confirming staff reductions at F1 developer Codemasters, which is owned by Electronic Arts (EA).

As the industry continues to evolve, these latest developments highlight the challenges faced by game studios amidst corporate restructuring and the need to adapt to changing market conditions. The future of New World Interactive and its projects will undoubtedly be closely followed by game enthusiasts and industry insiders alike.