Atomhawk, the UK outsourcing studio under the Sumo Group umbrella, has closed its Canadian branch and laid off its entire team in Vancouver.
Company shared the news yesterday via LinkedIn. In a statement, Atomhawk executives said the decision “affects a small team of undeniably brilliant artists, creatives and friends,” although they did not disclose the reason for the decision.
The Canadian studio operated for eight years. During this time, the company led numerous research and development initiatives and outsourcing work, according to the statement. Atomhawk's portfolio includes games such as Skate, Age of Mythology: RetellingAnd Helldivers 2among many others.
“We want to thank the Canadian team for their passion, dedication and ideas,” the statement said. “You will always be cool, and as they say: once a Hawk, always a Hawk. Atomhawk will continue to operate in the UK as a partner for creative innovation in the games industry, building on the legacy of all Hawks past and present.”
Studio executives also said the company is “supporting all those affected,” but did not disclose the number of employees affected or what the support entails. When asked about this and the reason for the studio's closure, COO Becky Jackson said in a statement that “almost every company in the industry now has to make difficult decisions on a regular basis.” Additionally, Jackson said LinkedIn's statement “covers all aspects of the closure that we are prepared to discuss at this time.”
“I’m sorry, but I, along with the entire Canadian Atomhawk team, was laid off when the Vancouver studio closed,” he said. one of the injured employees on LinkedIn. “I've been a part of this team for the last 3+ years and it's heartbreaking to see it fall apart.”
Earlier this year, Sumo Group decided to focus solely on joint development.
In February, the British company said it would no longer develops its own propertiesinstead focusing solely on co-development. Back Sumo said the goal is to balance its creative ambitions with changing “commercial realities” to ensure long-term stability. The company also explained that the transition would impact its studios and staff, but did not provide further details.
The news comes six months after Tencent-owned Sumo laid off 15 percent of its workforce and closed the Canadian studio Timbre Games.
As of February, Sumo had 1,500 employees across 18 studios in the UK, Canada, India and the US, including Sumo Digital, The Chinese Room, Red Kite Games, Auroch Digital and Atomhawk.
In 2021 the company purchased by Tencent for $1.27 billion. through its subsidiary Sixjoy Hong Kong Limited.
Update 11/06: This story has been updated with commentary from Atomhawk.
