Sumo Group announces strategic shift, layoffs expected to follow
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UK-based games company Sumo Group is refocusing its efforts on ‘development services for partners’ and could lay off an undisclosed number of employees. The company will now focus exclusively on these services rather than continuing to create its own IP.
That’s according to the firm’s CEO, Carl Cavers, who said that the decision was for the “long-term stability” of the company. The statement also noted that “unavoidably, this transition will have an impact on our studios and people.”
“After careful consideration, we have made the strategic decision to focus Sumo Digital exclusively on development services for partners – our core strength and the foundation of our success,” Cavers wrote.
“We are committed to minimising this impact as much as possible, exploring all options to retain talent, and supporting those affected with transparency, care, and compassion.”
Headquartered in the UK, Sumo Group was founded in 2003. It specialises in co-development and full-game production with studios in Sheffield, Nottingham, Newcastle, Leamington, and Warrington. In June 2024, it laid off 15 per cent of its staff.
Looking ahead
Cavers expressed confidence that the company’s strengthened position as a “premium development partner” will allow them to leverage their expertise in creating games for clients.
“While this is a difficult moment, this change has no impact on existing or future commitments with partners and provides a better platform for us to focus on our core strengths and return to a thriving business,” he concluded.
The firm’s subsidiaries include Red Kit Games, Lab42, The Chinese Room, Atomhawk, Midoki, and Auroch Digital. The company has contributed to titles such as Team Sonic Racing, Crackdown 3, Sackboy: A Big Adventure, and Little Orpheus. In 2022, Tencent acquired Sumo Group in a $1.3 billion deal.
Chinese publishing giant Tencent acquired Sumo Group in a $1.3 billion deal in 2022.
