Splash Damage Initiates Studio-Wide Consultation, Redundancies Expected

Splash Damage has embarked on a consultation process that will affect its entire workforce, leading to significant job losses. The decision was announced to staff and made public via a LinkedIn post. In a statement, the company explained that this move is necessary to adapt to the evolving market and stay agile. The studio, previously owned by Tencent, was acquired by private equity investors in September. Despite assurances that it would continue to operate under its existing leadership, the studio is now undergoing significant changes. This development follows the cancellation of its online action game Transformers: Reactivate and the announcement of an open-world survival game, Project Astrid. The company's most recent release was Outcasters, a multiplayer shooter for Google's Stadia platform. This news comes as a blow to the London game development scene, which has seen recent cutbacks at Square Enix and the closure of Sony's London studio. The move is also part of a larger trend of Chinese companies pulling back on their Western investments, leading to divestments and closures. Splash Damage, founded in 2001, has a history of developing multiplayer shooters and has collaborated with major companies like Microsoft on titles such as Gears of War 5 and Halo.