Sharkmob confirms “difficult but necessary” restructuring, unknown number of jobs at risk

Tencent-owned studio Sharkmob has confirmed planned job losses at its Malmo studio, which is currently working on sci-fi extraction shooter Exoborne. The company’s London studio was effectively closed in 2024, after all local staff were made redundant following the cancellation of an unannounced game.

In a statement, Sharkmob said that “planned changes to its organizational structure” were taking place against the backdrop of “a challenging environment for games developers”.

The changes were described as “difficult but necessary steps” which would enable the company to “sharpen our focus and align our efforts on the continued development of Exoborne and position us for sustainable growth.”

Exoborn, the company’s second release, completed its second public playtest in October. The game currently has no release date.

The company did not provide further details, citing an ongoing employee consultation process. Under Swedish employment law, proposed redundancies are subject to internal consultation and negotiation with union representatives where required, and affected staff are required to maintain confidentiality about the process.

Sharkmob is owned by Chinese behemoth Tencent, which laid off staff at its Funcom studio last month following the well-received launch of Dune: Awakening. As part of that process, Metal: Hellsinger studio The Outsiders was closed.

In September, Tencent VP Yong-yi Zhu told GamesIndustry.biz that Tencent had “no plans at the moment to pull out” of the Western market, but said it “may see a reduction in investment in certain places, and I think part of that is just the realities of the industry and the dynamics of the industry.” The studio invested heavily in Western studios in recent years, acquiring Sumo Digital and taking a majority stake in Fatshark.

The news follows a series of cutbacks at fellow Chinese publisher NetEase, which has resulted in the recent closure of a number of studios it founded or funded including Fantastic Pixel Castle, T-Minus Zero Studios and Bad Brain Games.