Sumo Group Shifts Strategy and Faces Layoffs Ahead

Sumo Group, a leading UK-based video game developer, has announced a significant shift in its strategy, which will likely result in layoffs. This move is a response to the changing gaming landscape and increased competition.

The company's new strategy focuses on creating smaller, more agile teams to develop games. This approach will allow Sumo Group to be more nimble and responsive to market trends.

Sumo Group's decision to shift its strategy is a direct response to the industry's shift towards cloud gaming and the growing importance of online services. This change has forced many game developers to adapt and evolve their business models.

The shift in strategy will likely impact the company's workforce, with layoffs expected as a result of the restructuring.

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Sumo Group's company structure is made up of several key divisions, including Sumo Digital, Auroch Digital, and The Chinese Room.

Sumo Digital is the largest and most well-known of these divisions, with a history dating back to 2003.

Auroch Digital, on the other hand, specializes in developing games for PC and consoles, with a focus on creating immersive and interactive experiences.

The Chinese Room, a BAFTA-winning developer, is known for its innovative and critically acclaimed games such as "Everybody's Gone to the Rapture" and "Firewatch".

Sumo Group's company structure allows for a high degree of autonomy and flexibility among its divisions, enabling them to focus on their unique strengths and areas of expertise.

Each division has its own distinct culture and approach to game development, which is reflected in the wide range of games and projects they produce.

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Sumo Group has made a significant acquisition in Auroch Digital, a UK Games Fund supported company. Auroch Digital has a pipeline of original IP and a track record for developing innovative, high-quality titles.

The acquisition is a key part of Sumo Group's expansion into new growth areas. Sumo Group is a provider of award-winning creative and development services to the video games and entertainment industries.

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Tomas Rawlings, the founder of Auroch Digital, credits the UK Games Fund for its support in the studio's journey from indie start-up to becoming part of Sumo Group. The UK Games Fund has been instrumental in helping funded companies like Auroch Digital achieve success.

Sumo Group has also launched a new publishing division called Secret Mode in March 2021. Auroch Digital's acquisition will extend the Group's publishing capability and add a complementary development team to support Secret Mode.

Auroch Digital's live development projects already have publishing partners in place, but several forecast titles require a publishing partner and have received interest from third parties. This presents further opportunities for Secret Mode.

Here are some key facts about Sumo Group's acquisitions and partnerships:

Sumo Group has undergone significant changes in its business structure. The company has divested several subsidiaries, including Secret Mode and The Chinese Room, both of which were divested in 2025.

These changes have been part of the company's strategic shift, announced in a statement by CEO Carl Cavers. The company will now focus exclusively on development services for partners, rather than creating its own IP.

This strategic decision was made to ensure the long-term stability of the company, but it will inevitably have an impact on the company's studios and people.

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As part of the company's business changes, several subsidiaries have been divested or closed. Secret Mode was divested in 2025, marking a significant shift in the company's strategy.

The Chinese Room, another subsidiary, also underwent a similar fate, being divested in 2025. This move highlights the company's efforts to restructure and adapt to changing market conditions.

Timbre Games, unfortunately, closed its doors in 2024, leaving a void in the company's operations. This closure serves as a reminder of the ever-changing landscape of the business world.

Here are the former subsidiaries in a concise list:

Sumo Group, a UK-based games company, has announced a strategic shift that will likely lead to layoffs. The company will now focus exclusively on development services for partners, rather than creating its own IP.

This change is expected to impact their studios and employees, but the company is committed to minimizing the impact and supporting those affected. Sumo Group was founded in 2003 and has studios in several locations, including Sheffield, Nottingham, and Leamington.

The company's CEO, Carl Cavers, expressed confidence that this change will allow them to leverage their expertise and return to a thriving business. In June 2024, Sumo Group laid off 15% of its staff, and it's unclear how many more layoffs are expected as a result of this new strategy.

The company will continue to work with existing and future partners, and this change is intended to help them focus on their core strengths.

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