Parent company Tencent has announced a round of layoffs at the UK-based Sumo Group, which includes international studios worldwide, as well as Sackboy and Texas Chain Saw Massacre developer Sumo Digital.
A press release announced the news, revealing that the reduction would affect employees based in Canada, the UK, Poland, the Czech Republic, and India. Sumo Group explained the sorry state of affairs: "Whilst Sumo has been able to manage through many of the recent difficulties the games industry has faced, we have not been immune and reshaping operations across the business to better navigate the upcoming challenges expected in the coming months is a path we must now take to ensure the security of the business going forward."
Noting that "every alternate route to limit the impact to our people is being considered, but sadly, this process of transformation will affect up to 15% of our people," the layoffs are just a microcosm of the industry's overall shrinkage. In 2023, the Group employed more than 1,100 staff across 16 studios. Sumo Group was acquired by Tencent in 2021 for a reported $1.27 billion.