The UK-based studio, known for Gears Tactics and Halo: The Master Chief Collection, was recently acquired by a group of undisclosed private equity investors, according to GI.biz. The studio had previously been owned by the Chinese conglomerate Tencent.

“This was a difficult decision, but we believe it is necessary to keep Splash Damage agile and adaptable in a challenging market,” the company stated.

“We understand that transitions like this are emotionally challenging, and we are committed to supporting our team with honesty and care. We will explore every option to retain talent and ensure those affected receive meaningful assistance throughout the process.”

According to the UK government, employees at risk of redundancy are entitled to a consultation with their employer. This process allows workers to understand the reasons for potential layoffs and discuss possible alternatives.

In July 2024, Splash Damage noted that a “small number of employees” might be laid off to restructure the studio in a way that “better suits the needs of our current and future games.”