Apparently, last quarter's unpleasant surprise to Embracer Group is having quite the effect as early this week the gaming and entertainment conglomerate needed to do some big adjustment, including closing some subsidiaries and businesses.

Out of nowhere, Embracer Group confirmed to be running a layoff process and closing some business in response to their surprising failure to a multi-million deal project that died at the last minute.

Via an open letter written by CEO Lars Wingefor, claims that the response at this difficult time restructuring program will be designed to make Embracer “leaner, stronger and a more focused, self-sufficient company”.

The movements will include, but not be limited to, closing or divestments of some studios and the termination or pausing of some ongoing game development projects as well the layoff of 17,000 beginning now to the end of the year.

Unfortunately, Wingefor admitted that at this time, it is unknown if the number can be sustained or more people needed to be let go.

Also, Embrace Group will reduce third party publishing and put greater focus on internal IP and increase external funding of large-budget games.

Wingefors also noted that the planned game cancellations will “almost entirely be around unannounced projects,” stating that “all announced significant releases will still be released as planned”.

Crystal Dynamics is fine (for now?!)

Crystal Dynamics went ahead and assured everybody that everything is business as usual on their side and let’s hope it remains like that in the short-term future.