Just days after showcasing multiple games at various Summer Game Fest events, Sumo Group has made the difficult decision to lay off up to 15% of its total workforce in order to secure the future of the business.
The company, which employs over 1,790 individuals across multiple studios worldwide, is looking to reshape its operations to better navigate the challenges expected in the coming months. The layoffs come as a surprise following Sumo Digital’s recent announcements, including the unveiling of Critter Cafe and gameplay trailers for DeathSprint 66 and Still Wakes the Deep.
Impact on Timbre Games
Polygon senior reporter Nicole Carpenter revealed on Twitter that the layoffs may result in the closure of development studio Timbre Games, a move that has left employees shocked and saddened. Timbre Games, founded by Sumo Group in July 2021, was working on two games at the time of closure, one described as an ARPG and the other as a cozy, RPGish, sim-like experience.
Industry-Wide Challenges
This news adds to a series of layoffs and studio closures within the gaming industry, with companies like Behaviour Interactive, Avalanche Studios Group, and Square Enix also making similar announcements in recent months. Despite these challenges, industry leaders like Xbox boss Phil Spencer continue to emphasize the need to make tough decisions to ensure the sustainability of their businesses, even as the industry as a whole continues to grow.
The gaming industry has been experiencing a wave of workforce layoffs, reflecting broader economic uncertainties and shifting market dynamics. As companies strive to balance innovation with financial stability, these decisions underscore the complexities involved in maintaining a competitive edge while safeguarding long-term viability.
Sumo Group's recent workforce layoffs highlight the delicate balance companies must strike in an ever-evolving industry. As the gaming world watches closely, the hope remains that these strategic moves will pave the way for future successes and innovations.