Sumo Group, the company behind the recent Summer Game Fest reveals, has announced that it will be laying off up to 15% of its workforce in an effort to ensure the security of the business moving forward. This decision comes just days after showcasing multiple games at various events.
In a statement, Sumo Group explained that while they have managed to navigate many of the challenges faced by the games industry, they now need to reshape operations to better prepare for upcoming difficulties. This unfortunately means reducing costs across the business, which will result in job cuts in Canada, the UK, Poland, the Czech Republic, and India.
The exact number of employees affected has not been disclosed, but with over 1,790 employees worldwide, it could mean around 270 people losing their jobs. This news comes as a surprise to many, especially considering that just a day before the announcement, Sumo Digital was celebrating a successful weekend with new game announcements.
The layoffs may also include the closure of development studio Timbre Games, as hinted at by Polygon senior reporter Nicole Carpenter. Employees of Timbre Games have confirmed the closure on LinkedIn, expressing their shock and sadness at the news. The studio was founded by Sumo Group in 2021 and had two games in development at the time of closure.
Unfortunately, these layoffs and studio closures are becoming all too common in the industry. In recent months, several companies have announced job cuts and office closures in an effort to streamline operations and ensure sustainability. Microsoft, for example, recently closed four studios and eliminated 1,900 jobs following a major acquisition.
Despite the challenges faced by the industry, Sumo Group remains committed to delivering quality games and supporting its remaining employees. The company is hopeful that these changes will help secure its future and allow it to continue creating engaging gaming experiences for players around the world. Stay tuned for further updates on this developing story.