Sackboy Developer Hit With Layoffs

Sumo Digital

By Charming Holiday

Published Jun 11, 2024

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Sumo Digital

Highlights

Layoffs are hitting Sumo Digital, developer of Sackboy: A Big Adventure, amidst an industry-wide trend of cost-cutting measures and restructuring.
An internal announcement reveals a planned layoff of 15% of Sumo's global staff, raising questions about upcoming game releases and future projects.
The video game industry has been plagued by near-constant layoffs and uncertainty, with audiences and industry personnel feeling uneasy about the industry's future.

Layoffs continue to plague the video game industry, as Sumo Digital, the studio behind Sackboy: A Big Adventure, announced it will be cutting 15% of its global workforce. In spite of new game updates from Sumo Digital suggesting that the developer has plenty in store for fans, many of the creators behind those projects are now facing cutbacks.

First established in 2003 in the United Kingdom, Sumo Digital has since expanded to several countries across the world, with offices in Europe and Asia. Fans have enjoyed a number of big releases from the developer, but the past year's bombardment of gaming layoffs has finally reached the steps of Sumo Digital's door.

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Sumo Digital shared an internal statement on its official Twitter account announcing the planned layoff of 15% of its staff at offices in Canada, Czech Republic, India, Poland, and the United Kingdom. This portion of its workforce is estimated to represent roughly 160 employees. According to the statement, the layoffs have come as a result of "reshaping operations" that aim to reduce costs in response to "recent difficulties" faced by the video game industry as a whole. Audience reception to the announcement has been mixed, with many questioning the timing of the statement. Sumo Digital recently announced a number of new titles at Summer Game Fest 2024, and fans are now skeptical whether these impending layoffs will have any impact on the upcoming games and future projects.

Video Game Studios Continue To Face Layoffs

Thousands of workers in the video game industry were laid off across dozens of studios and companies in 2023, and the unfortunate "cost reduction" trends have continued to slam both AAA and indie developers and publishers in 2024. Big names like Sony, Microsoft, Embracer Group, and Bungie were among the many companies to announce major layoffs. Studios have seen near-finished projects canned and industry veterans shown the door, with audiences still confused about the necessity of the seemingly endless layoffs. Between the almost constant announcements of workforce cutbacks and controversial statements by gaming executives, many continue to vocalize their concerns about the longevity of the video game industry under such tumultuous conditions.

During a joyous season of new video game announcements, many have been unable to fully enjoy the big showcases, as the looming threat of layoffs and cancelations has left audiences and industry personnel with a sense of unease. With Sumo Digital now racking up yet another round of "restructuring" for the video game industry, it remains to be seen if the broader causes of these layoffs will ever be mitigated.