Splash Damage, the UK-based game developer known for titles such as Gears Tactics and Halo: The Master Chief Collection, has started a company-wide consultation process that will result in staff layoffs.

The studio, which was recently acquired by a group of unnamed private equity investors after previously being owned by Tencent, announced the move in a statement shared on LinkedIn. The consultation will impact all roles within the company.

In the statement, Splash Damage said, “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 the process with honesty and care. We’re committed to exploring every option to retain talent and making sure those affected have meaningful support throughout.”

Under UK employment law, employees at risk of redundancy are entitled to a consultation with their employer. This process allows affected staff to ask questions about the reasons for layoffs and to discuss possible alternatives. If fewer than 20 redundancies are planned, there are no specific rules for how the consultation should be conducted. For 20 or more redundancies at the same time, collective redundancy rules apply.

Splash Damage had already reduced its workforce earlier in the year after cancelling the project Transformers: Reactivate. In July 2024, the company confirmed that a “small number of employees” could be laid off as part of efforts to restructure and better align with the needs of its current and future games.

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