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Embracer reportedly making layoffs at MX vs ATV Legends maker Rainbow

Embracer reportedly making layoffs at MX vs ATV Legends maker Rainbow

Rainbow Studios is apparently the latest studio in the firing line of Embracer's restructuring efforts.

That's going by LinkedIn posts from multiple staff – as reported by Game Developer – which point to the company experiencing layoffs.

"This is a profoundly sad moment for the industry, and for me personally as I leave a studio I love," former QA analyst Austin Herrington wrote on LinkedIn.

"While I had hoped to stay at Rainbow for much longer, I’m proud of the studio and of everything we accomplished. Nobody wanted this to happen, and I can’t say enough about how well we were treated on our way out."

This, of course, comes in the wake of Embracer failing to land a $2 billion deal, resulting in a considerably reduced share price and the Swedish giant having to cut projects, studios and jobs. Volition of Saints Row fame and Campfire Cabal have been closed, while Embracer is reportedly looking into selling Gearbox.

An Embracer spokesperson has said that the company isn't commenting on individual studios or its restructuring program, but told Game Developer that this is focused on "cost savings, capital allocation and operational and financial efficiency measures."

They continued: "Part of those initiatives could be the closing of studios, downsizing, and termination of projects with low projected returns. Each process will be managed locally on operative group level with focus on informing affected employees first, and on group level we will not comment on specific studios at this point in time."

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.