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Splash Damage, one of the leading names in the British gaming industry, is facing a new wave of layoffs that may extend to all of its departments. The studio, which introduced games such as Gears Tactics and co-developed Gears of War and Halo: The Master Chief Collection, announced via an official statement that it is entering a company-wide counseling phase that affects all roles.
The studio explained that the move is “necessary for Splash Damage to remain adaptable” amid a market that is considered one of the toughest periods the industry has experienced, and these layoffs come just two months after Splash Damage’s ownership transitioned from Tencent to an anonymous group of private equity investors.
This isn’t the first time the studio has had a tough year. 2025 saw a series of setbacks as, following the cancellation of Transformers: Reactivate, the team downsized to redirect its efforts, one of which was Star Wars: Hunters, which was released on phones in 2024, but the early PC version launched in January 2025 did not last long, as the game was completely discontinued and shut down in October of the same year.
The studio concluded its statement by emphasizing that it will explore “every possible option” to retain as many employees as possible while providing support to those who will be terminated, stating:
“We know that this kind of change is painful and we will do our best to support our team with honesty and transparency.
Splash Damage is still working on its huge project Project Astrid, an open-world survival game announced in 2023, but no updates have appeared since then, and with the current layoffs, questions are growing about the future of this project and the studio’s ability to continue at the same rate.
