Swedish mobile studio Coffee Stain Malmo has been shuttered. Coffee Stain Publishing's vice president of mobile Daniel Persson shared the news on LinkedIn and explained their role has been eliminated following the closure.

"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.

"To every single person who was part of this journey: Thank you. Your skill, dedication, and creativity made this place what it was. I wholeheartedly recommend each and every one of you. Any team lucky enough to bring you on board will be better for it."

According to the studio website, Coffee Stain Malmo comprised 17 employees. It's currently unclear whether the entire team has been laid off as a result of the shutdown.

Coffee Stain Malmo worked on a number of notable mobile titles including Goat Simulator 3 and Songs of Conquest Mobile. The studio is a subsidiary of Coffee Stain Publishing, which was spun off from Swedish conglomerate Embracer Group in 2025.

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The move came after Embracer confirmed it would be splitting its business into three standalone entities to search for "winning formulas" after embarking upon a restructuring program that resulted in widespread layoffs, project cancellations, studio closures, and divestment.

The layoffs, however, have continued, with Embracer cutting roles at both Crystal Dynamics and Eidos Montreal in recent weeks.

Game Developer has reached out to Coffee Stain Publishing for comment.