Embracer Group has laid off almost 1,400 people in the last year as part of its restructuring plan. It's also canceled 29 game projects. Karch said in a statement, "This divestment leaves both parties in much better positions to grow our respective businesses. I will continue to remain a large, long-term shareholder of Embracer and we will remain partners on several ongoing and future projects. This transaction also safeguards the livelihoods of hundreds of professionals, many of whom I have worked with for over two decades."