Gearbox confirms layoffs following sale by Embracer

Gearbox Entertainment has confirmed layoffs at the company, following the announcement of its sale by Embracer.

Staff impacted by the cuts took to social media last week to reveal they had been laid off, just hours after it was announced that Embracer had agreed to sell Gearbox to Grand Theft Auto publisher Take-Two for $460m (£366m).

Now, Gearbox has issued a statement on the layoffs, which it says are not «tied» to the development of Gearbox Software games. (Borderlands 4 was confirmed to be in «active development» last week.)

Newscast: Why are there so many games industry layoffs? Newscast: Why are there so many video game industry layoffs?

«Thank you for your thoughts and care for The Gearbox Entertainment Company as some reports of internal communication and actions are starting to flow through public channels,» a statement passed to Eurogamer reads.

«As we strive towards our mission to entertain the world, we are grateful that our talent and capability are of interest to you and your audience. The Embracer Group will continue to report on their restructuring program that impacted some parts of Gearbox today that are not tied to the development of Gearbox Software games.

»Thank you for granting us the space to remain focused on our people and in our handling of the situation with compassion and manage the process, balancing between our present duty and a commitment to our future."

It's unclear how many staff at Gearbox Entertainment have been affected. Writing on social media platform X, PR manager Jennifer Locke said she was one among «countless others» to be told they had been laid off.

Embracer's «comprehensive restructuring programme» began last year after the collapse of a $2bn «major strategic partnership», and has seen numerous studios suffer layoffs, while others have been sold off or shut down.