Highlights
- Coffee Stain has shut down its mobile-focused Malmö unit, affecting a 17-member team.
- Daniel Persson, vice president of mobile at Coffee Stain, confirmed the shutdown, noting his leadership role was eliminated.
- The move follows Embracer's restructuring and continued layoffs across group studios.
Coffee Stain has shut down its mobile-focused Malmö studio, ending operations at the Sweden-based team responsible for several mobile projects. Daniel Persson, the vice president of mobile, confirmed the closure on LinkedIn, stating that the company has eliminated his role as the head of the office.
However, it remains unclear whether the studio’s employees were laid off or reassigned within the company.
Founded in 2021, Coffee Stain Malmö operated as the publisher’s mobile development and publishing arm. The team worked on titles such as Goat Simulator 3 for mobile and Songs of Conquest Mobile, focusing on adapting Coffee Stain’s franchises for handheld platforms.
The studio’s official description highlighted a tight-knit group of 17 developers dedicated to expanding the company’s mobile lineup.
Persson reflected on the studio’s development and the team’s contribution. “Building this office from the ground up has been one of the most rewarding experiences of my career. It started as an idea, that grew into an amazing team of talented people. I couldn't be more proud of what we have accomplished together,” he wrote, while recommending the staff to potential employers.
Embracer Restructuring and Coffee Stain Spin-Off
The shutdown follows structural changes tied to Embracer Group, which spun off Coffee Stain in 2025.
Embracer moved to split its operations into standalone entities to identify “winning formulas” after a restructuring that included project cancellations, studio closures, layoffs, and divestments.
Recent 2026 reductions have continued across group studios. Crystal Dynamics laid off 20 employees in March 2026, while Eidos Montréal cut 124 staff in a new round of layoffs tied to shifting project priorities. In the same month, Embracer subsidiary Tripwire Interactive eliminated 23 roles, underscoring ongoing consolidation across the group.
Altogether, the studio’s closure leaves uncertainty about Coffee Stain’s mobile development direction.
