Friday, June 21, 2024

Sumo Group to reduce staff by up to 15%

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Sumo Group has announced it is seeking to cut costs with up to 15%, or nearly 250, of its employees at risk.

The firm says it hasn’t been immune to the challenges facing the games industry and needs to reshape its organisation to ‘navigate upcoming challenges’.

The company is best known for its work-for-hire and co-development services, and has built games for the likes of PlayStation, Microsoft and Sega. It also has an indie publishing team called Secret Mode. The firm has offices across Europe, India and Canada.

It was acquired by Tencent in a $1.27 million deal in January 2022.

The firm said in a statement: “Every day the incredibly talented people across Sumo studios are dedicated to creating great games and bringing ground-breaking experiences to players worldwide. That work and dedication over the past 21 years has helped to put Sumo on the map and build a family of studios that are second to none, and we are incredibly proud of what Sumo has become.

“Whilst Sumo has been able to manage through many of the recent difficulties the games industry has faced, we have not been immune and reshaping operations across the business to better navigate the upcoming challenges expected in the coming months is a path we must now take to ensure the security of the business going forward.

“The difficult decision to reduce our costs across the business in a number of ways is a direct result of these challenges, and unfortunately will include a reduction in the number of people the business can support. Every alternate route to limit the impact to our people is being considered but sadly this process of transformation will affect up to 15% of our people across the Group in Canada, UK, Poland, Czech Republic and India.

“This is an incredibly challenging process to go through for everyone at Sumo and our focus is now on supporting our people and working with our partners on their games as we move forward to ensure we emerge from this difficult time, ready for the future.”

Sumo Group has developed games including the BAFTA-winning Sackboy: A Big Adventure and Crackdown 3, and supported the development of games such as Team Sonic Racing, Forza Horizon and Hogwarts Legacy. It also develops its own internal projects, including Snake Pass and the upcoming Still Wakes The Deep.

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