Sumo Digital, a UK-based co-development studio, reveals layoffs

The co-development studio Sumo Digital, which is owned by Tencent, has initiated a process that may result in job losses. This was communicated to employees earlier today.

Specific details regarding the number of potential redundancies remain confidential as the company has chosen not to reveal them during the ongoing consultation process. However, they assure that all current and future projects are proceeding as planned.

Expressing a commitment to uphold their standards, Sumo Digital stated that they aim to continue delivering complete games and specialized co-development services for their partners' intellectual property. They acknowledged the necessity to adapt to industry challenges, positioning themselves for sustainable success in the long run.

In the company's statement, it was mentioned that such transitions can result in challenging decisions, leading to certain roles within the organization being under threat of redundancy. Nevertheless, ongoing and upcoming work remains uninterrupted, with a firm focus on close collaboration with partners to produce outstanding games. They believe adjustments made in the forthcoming weeks will bolster the company’s ability to meet future demands in the gaming industry.

Sumo Digital is deeply aware of the impact these changes may have on their staff, emphasizing their commitment to support those affected during this challenging period.

Tencent, which gained ownership of Sumo in 2022, has reportedly taken a more active role in managing its subsidiaries. Following this ownership change, Sumo altered its strategy, ceasing plans for publishing original games. As of February 2025, the focus shifted solely to providing development services for partners. This led to the sale of their publishing business, Secret Mode, and a management buyout of The Chinese Room. Additionally, the company's co-founders decided to step down in May.

Sumo Digital has previously collaborated on high-profile games such as Forza Horizon 5 and titles from the Gears of War and Warframe series, the latter being a product of Digital Extremes, another company linked to Tencent. The partnership with Digital Extremes was reportedly facilitated by Tencent, as highlighted in Bloomberg's prior coverage.