Sumo Group plans to cut its workforce by as much as 15%

Sumo Group has revealed plans to trim its workforce by up to 15%, affecting as many as 250 employees.

The company stated that it must restructure to handle upcoming industry challenges despite its past resilience. Known for its collaborative game development, Sumo's client list includes PlayStation, Microsoft, and Sega, and it operates the indie publishing division, Secret Mode, with offices located in Europe, India, and Canada.

Tencent acquired Sumo Group in a $1.27 billion purchase in January 2022.

Regarding the situation, Sumo Group released a statement: "Our dedicated teams across Sumo studios work tirelessly to create exceptional games, contributing to the brand's success over the past 21 years. This effort has established Sumo as a prominent player with a network of leading studios. However, to secure our future, we must adapt our operations to new industry conditions."

The statement continued, "While we explored every alternative to minimize the impact on our workforce, the financial strains we face necessitate these reductions, affecting up to 15% of our employees across our sites in Canada, the UK, Poland, the Czech Republic, and India. We are focused on supporting our team and maintaining our partnerships to overcome this challenging period."

Sumo Group has a notable portfolio, having developed titles like the BAFTA-winning Sackboy: A Big Adventure and Crackdown 3. The company also supported productions such as Team Sonic Racing, Forza Horizon, and Hogwarts Legacy. Additionally, Sumo engages in original projects, including Snake Pass and the forthcoming Still Wakes The Deep.