In September 2025 Splash Damage, who have been either making or helping make some of the best shooters of the last 20 years, was bought by a private equity firm. That was just two months ago. Today, the company announced that layoffs are coming.
In a statement published on social media, Splash Damage's statement reads:
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.
This "consultation process" is part of British law, and basically means that layoffs are coming; while we don't know exactly how many, the words "studio-wide" and "affecting all roles" certainly suggests there are going to be more than a few workers impacted.
Having assisted Microsoft on a number of high-profile shooters through the 2010s, from Gears of War to Halo's Master Chief Collection, Splash Damage was bought by Tencent in 2020. A major project they'd been working on for a number of years, Transformers: Reactivate, was cancelled at the beginning of 2025, resulting in a wave of layoffs.
Transformers Reactivate was first shown off at The Game Awards in 2022, before being officially cancelled in January 2025
The studio's new owners--who have only been named as "private equity investors"--clearly have no interest in Splash Damage's history or experience, and have instead wasted absolutely no time doing what they do best: buying storied old companies and gutting them to the bone, before throwing those bones into the trash and moving onto the next victim.
I'm sure some asshole in an expensive suit would argue that as of November 2025 Splash Damage's recent track record and the current volatility affecting the video game market make them a prime target for layoffs and maybe even closure. I would argue that anyone looking at a spreadsheet featuring the last three month's financials, and not the wider picture that this is a studio full of experienced developers who know how to make good video games, should be thrown into the deepest part of the ocean.
