Sharkmob announces "challenging yet essential" reorganization, with an unspecified number of positions potentially affected

Tencent's game studio, Sharkmob, has disclosed upcoming layoffs at its Malmo location, which is engaged in the development of the sci-fi shooter Exoborne. Sharkmob's London office was shut down in 2024 after local team members were let go due to the discontinuation of a yet-to-be-announced project.

Sharkmob stated these organizational changes are part of addressing the "challenging environment for games developers." According to their announcement, these adjustments are "necessary yet difficult" and aim to streamline their efforts towards the growth and development of Exoborne.

After completing its second public playtest in October, Exoborne does not yet have a set release date. Further information about the changes has not been provided due to an ongoing consultation process with employees. Swedish employment laws mandate that proposed layoffs undergo internal consultation and potential negotiation with labor unions, requiring affected employees to keep the process confidential.

Sharkmob is part of the Tencent family, a major Chinese corporation that recently saw staffing reductions at its Funcom studio post-launch of the successful Dune: Awakening. Consequently, Metal: Hellsinger studio, The Outsiders, was shut down.

In a conversation with GamesIndustry.biz last month, Tencent VP Yong-yi Zhu indicated that while plans to exit the Western market are not imminent, there might be less investment in some areas, reflecting industry trends. Tencent has extensively invested in Western game studios, including acquiring Sumo Digital and obtaining a minority share in Fatshark.

This announcement from Sharkmob aligns with recent reductions by Chinese company NetEase, which led to the closing of some of its studios, such as Fantastic Pixel Castle, T-Minus Zero Studios, and Bad Brain Games.