TL;DR
- The studio says all current and upcoming projects remain unaffected during the process.
- Sumo cites industry instability and long-term restructuring as reasons for the decision.
- The move follows several major strategic changes since Tencent acquired the company in 2022.
Tencent-owned co-development studio Sumo Digital has confirmed it has entered a redundancy consultation process, placing an unspecified number of roles at risk. Staff were informed of the decision earlier today, marking another high-profile example of restructuring within the global games industry.
In a statement, Sumo Digital said it is unable to share the exact number of positions affected while the consultation remains ongoing. The studio emphasized that all active and upcoming projects are unaffected, and that work with its partners will continue as planned.
“Sumo Digital is committed to upholding the high standards we set for ourselves, delivering full games and specialist co-development services for our valued partners and their IP," the company said. "Like many other studios, we have had to adapt to ongoing instability, evolving our business to remain resilient and positioned for long-term success."
The company acknowledged the difficulty of the situation, noting the human impact behind the business decision.
“Change often involves tough decisions. So it’s with a heavy heart that today we have informed our people that certain roles across parts of our organisation are sadly at risk of redundancy."
Despite the uncertainty for staff, Sumo reiterated that its operational focus remains unchanged.
“All active and upcoming projects are unaffected. We remain focused on working closely with our partners to make great games. We’re confident the changes we make over the coming weeks will help ensure Sumo is positioned to meet the needs of the video games sector in 2026 and beyond.
“For now, we recognise the impact this will have on our people and our immediate priority is supporting all those affected with care and respect throughout this difficult time.”
Sumo Digital was acquired by Tencent in 2022, a deal that brought the studio into the portfolio of one of the world’s largest technology and gaming companies. In recent years, Tencent has reportedly taken a more assertive approach with its subsidiaries, prompting strategic shifts across several studios it owns.
Following the acquisition, Sumo began scaling back its ambitions to publish original titles. In February 2025, the company announced it would exclusively focus on development services for partners. That transition led to further structural changes, including the sale of its publishing label Secret Mode in March and a management buyout at The Chinese Room in July. The studio’s co-founders also departed the business in May.
The redundancy process comes amid a challenging period for the video games industry, as studios worldwide continue to navigate rising costs, project cancellations, and shifting publisher priorities.
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