Splash Damage has initiated a consultation process for its entire studio in anticipation of potential layoffs

Staff at Splash Damage's Bromley studio are facing potential job losses as the company begins a consultation process that will lead to significant layoffs. This announcement was made through LinkedIn.

The studio, acquired by undisclosed private equity investors in September, had formerly been under Tencent's ownership after its purchase of Leyou in 2020. Leyou had bought Splash Damage from its founder, Paul Wedgewood, back in 2016. Despite changes in ownership, the current leadership team has remained intact.

Earlier in the year, the studio cut jobs due to the termination of the online game Transformers: Reactivate, which, although announced in 2022, was never presented to the public. In 2023, Splash Damage revealed a new project, an open-world survival game known as Project Astrid, working alongside popular streamers Christopher "Sacriel" Ball and Michael "Shroud" Grzesiek.

The last title released by Splash Damage was Outcasters in 2020, developed for Google's now-defunct Stadia platform.

The Splash Damage studio building in Bromley. — Splash Damage was among the few large studios in London. | Image credit: Splash Damage

The studio's situation is another setback for London's gaming scene, which has seen similar challenges, such as Square Enix's recent restructuring, affecting over 100 positions at the former Eidos, and Sony's decision to shutter its London studio in 2024.

Following Tencent's acquisition, CEO Richard Jolly expressed optimism about the studio's future. However, in 2024, both Tencent and competitor NetEase dialed back their international growth plans, resulting in layoffs and strategic shifts among Tencent's Western operations, including a reduction at Sumo Group and the divestment of its Secret Mode publishing label.

Even though Tencent's VP Yong-yi Zhu mentioned to GamesIndustry.biz that there are no immediate plans to exit Western markets, he acknowledged potential investment cuts influenced by industry conditions.

Established in 2001 by enthusiasts from the Quake modding community, Splash Damage gained fame with Wolfenstein: Enemy Territory. They later developed titles such as Enemy Territory: Quake Wars, Brink, and Dirty Bomb, honing their expertise in multiplayer shooters. Prior partnerships with Microsoft included contributions to games like Gears of War 5 and the remastered Gears of War and Halo titles. The studio's Gears of War Tactics release in 2020 was well-received.