UK co-development house Sumo Digital announces redundancies

Tencent-owned co-development studio Sumo Digital has announced a redundancy process, with an unspecified number of staff at risk. Employees were told this morning.

The company said it was unable to comment on the number of roles at risk while the consultation process was underway, and “all active and upcoming projects are unaffected.”

“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 in a statement. “Like many other studios, we have had to adapt to ongoing instability, evolving our business to remain resilient and positioned for long-term success.”

“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.”

“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.”

The company was acquired by Chinese behemoth Tencent in 2022, which has been “more assertive” with the companies that it owns in recent years. Sumo subsequently curtailed plans to publish original titles, announcing in February 2025 it would “exclusively focus on development services for partners.” It subsequently sold off publishing business Secret Mode in March, and The Chinese Room completed a management buyout in July. The company’s co-founders departed the business in May.

Sumo has previously provided development support for titles including Forza Horizon 5, Gears of War and Warframe, the latter produced by fellow Tencent firm Digital Extremes. Tencent arranged the latter partnership, according to previous reporting from Bloomberg.