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Tencent-owned UK-based game co-developer Sumo Digital announced redundancy measures this morning (via GamesIndustry.biz).
Sumo Digital released a statement. “Like many other studios, we have had to adapt to ongoing instability, evolving our business to remain resilient and positioned for long-term success,” outlined the statement.
“Today we have informed our people that certain roles across parts of our organisation are sadly at risk of redundancy,” continued Sumo.
“All active and upcoming projects are unaffected”.
Sumo Digital is known for its work as a co-developer on a wide range of titles, including Warframe, Fallout 76, Gears of War Reloaded, Still Wakes The Deep, and Forza Horizon 5.
Chinese multinational technology conglomerate Tencent acquired the developer in 2022 for a reported $1.27 billion (£0.94 billion). Following this, in June 2024, Sumo reduced its business by 15%, making nearly 250 employees redundant.
As of February 2025, Sumo shifted to purely co-development as the co-founders stepped down, not a month later.
This came amid other drastic changes. Sumo sold off its publishing business, Secret Mode, in March last year, and developer Chinese Room gained independence through a management buyout a few months later.
Pushed out the ring
The past few years of news from Sumo have painted a bleak outlook for the future. This recent round of layoffs follows a previous round of layoffs, not two years prior. This comes as many other studios have continued to lay off employees, due to shrinking expectations and growing reliance on AI technology.
The line from Sumo claiming all existing projects are unaffected seems far-fetched in light of a prevailing sentiment reported on in a recent GDC survey of laid-off video game workers.
As one laid-off worker put it: “Executives who have never actually worked as a dev are pulling up the boards on their ships, throwing people overboard, and expecting these scuttled ghost ships to keep making them infinite money.”
As co-founders depart Sumo and the company’s focus shifts, it is hard not to see the heavy, callous hand of corporate leadership behind many of these decisions. While it is not unfamiliar news, the layoffs continue to damage the industry.
As usual, we wish all those affected the best in their future endeavors. We’re getting pretty tired of writing that.
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