Embracer Group has closed down 'Insurgency' developer New World Interactive.

The studio was working on the tactical first-person shooter 'Insurgency: Sandstorm', a sequel to their eponymous 2014 title, but has now suffered a plethora of layoffs.

Embracer Group, New World's parent company, announced that they would be axing jobs in their latest "restructuring" efforts.

In a statement to Insider Gaming, Saber Interactive, another subsidiary of Embracer, revealed New World was shutting down.

They said: "Saber can confirm there have been restructuring changes involving our New World Interactive subsidiary. 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.”

This is the second mass layoffs from Embracer, with 50 jobs being lost from 'Chorus' developer Fishlabs last week, after the company struggled to finance their upcoming project 'Project Black''.

In a statement, a spokesperson for the company announced the news, and insisted Embracer was handling the situation with "the upmost respect and care".

They said: "Despite exhaustive efforts to avoid downsizing, the lack of approval and therefore financing for the studio’s unannounced project (also referred to as 'Project Black') has made this step unavoidable.”

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