A consultation process has kicked off at Splash Damage that will affect all staff and is expected to conclude with major job losses at the studio, the company announced this week.
Here’s the full statement from Splash Damage:
Today we announced to our teams that we are entering a studio-wide consultation process affecting all roles. This was a difficult step for us to take, but we believe it is necessary so Splash Damage can remain agile and adaptable in what has been a very challenging market.
We know this kind of change is emotionally tough, and we will do what we can to guide our people through this process with honesty and care. We’re committed to exploring every option to retain talent and making sure those affected have meaningful support throughout.
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Back in December 2020, Tencent announced it had acquired Leyou, the parent company of Splash Damage, although at the time it was revealed that the developer would maintain its independence and “operate as an independent entity within the Tencent family.” Back in September this year, Splash Damage had been sold by Tencent to an unknown group of private equity investors.
Splash Damage announced at the beginning of 2025 that it was laying off an undisclosed number of staff and decided to scrap development of Transformers Reactive. At the time, it said that it was “scaling down to refocus our efforts on other projects,” adding that “Hasbro was an incredible and supportive partner throughout, and we hope to work with them again.”
[Source – GI.biz]