Sumo Group's Workforce Reduction: 250 Employees Impacted

Tencent Holdings Ltd‘s TCEHY Sumo Group, the parent company of Secret Mode and other game developers, has announced layoffs affecting 15% of its workforce, citing challenges facing the games industry.

In a statement, Sumo Group said: “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.”

See Also: Game Industry Braces For ‘Year of Closures’ In 2024, Report Says

They added: “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.”

With approximately 1790 employees, around 250 individuals are impacted by the layoffs. The closure of Timbre Games, a studio within Sumo Group focused on AAA games, may be a consequence of this decision, according to Polygon reporter Nicole Carpenter.

Sumo Group acknowledged the difficulties faced by its employees during this process: “This is a challenging situation for everyone at Sumo.” In the press release, the company outlined its focus on supporting staff and collaborating with partners to address the situation.

The broader context highlights a widespread issue within the industry, with major players like Take-Two Interactive Software Inc TTWO, Microsoft Corp. MSFT, and Square Enix Holdings Co. SQNXF also announcing layoffs recently.

In 2023, over 10,000 developers were affected by layoffs, and the trend appears to continue into 2024.

Read Next: 2024 Gaming Industry Shakeup: Over 2,700 Layoffs Revealed In Past 11 Days

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