Sweden's Embracer Group has shut down Insurgency developer New World Interactive.

Second Wind's Nick Calandra first reported that the developer has been shut down on Twitter, though Saber Interactive – the subsidiary under which the developer is under – says that it characterises this as a "reorganisation" in a statement to Insider Gaming.

Work on Insurgency: Sandstorm is continuing, though it appears an unannounced project at the studio has been cancelled with "most of the team" being laid off, per a LinkedIn post shared by Calandra.

We've reached out to Saber Interactive to find out more.

Embracer acquired New World Interactive in August 2020.

“Saber can confirm there have been restructuring changes involving our New World Interactive subsidiary," Saber said.

"This reorganisation has unfortunately resulted in layoffs at the studio. We are working to fill existing open roles within Saber with individuals affected by these changes wherever feasible and we will be providing severance packages to those employees impacted.

“Development will continue on Insurgency: Sandstorm, as well as unannounced future projects.”