Sumo Group has announced a reduction of approximately 15% of its workforce, which equates to 250 fewer employees. The goal is to reduce costs to remain competitive in the current market, which is increasingly complex to deal with. More precisely, the statement explains how the company has not remained immune to the new challenges proposed by the video game industry and therefore needs to reform its organization.
Sumo Group is best known for its commissioned work, carried out for leading companies such as Sony, Microsoft and SEGA. He also runs a publishing label that deals with indie titles called Secret Mode. He has offices spread all over the world: Europe, India and Canada.
A difficult process
In January 2022 Sumo Group was acquired by the Chinese giant Tencent for $1.3 billion. In an official statement, Sumo Group said that “Every day, the incredibly talented people at Sumo studios are dedicated to creating amazing games and groundbreaking experiences designed for players around the world. For the past 21 years, a lot of work and dedication have contributed to making Sumo known and to build a family of studios like no other, and we are incredibly proud of what it has become.”
“While Sumo has managed to overcome many of the recent challenges faced by the video game industry, we have not been immune and now we must embark on a reorganization process of operations across the company that will last for the next few months, to better address the upcoming challenges, so as to ensure their safety.”
“The difficult decision to reduce costs in various business areas is a direct consequence of these challenges and, unfortunately, will include a reduction in the number of people the company can support. We are evaluating every alternative path to limit the impact of this decision on our people, but unfortunately this transformation process will affect up to 15% of our employees across the Group in Canada, the United Kingdom, Poland, the Czech Republic and India.”
The statement concludes with the aim of helping those laid off to find new jobs as soon as possible, with all the possible support from the company.
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