Splash Damage, the studio behind games like Gears Tactics and Star Wars: Hunters, is facing layoffs that could impact the entire company.
These new layoffs are happening just two months after Splash Damage was sold by former parent company Tencent to an unknown group of private equity investors.
Splash Damage Layoffs Are “Studio-Wide”
In a post on social media on Wednesday, it was announced that the company was “entering a studio-wide consultation process affecting all roles.” This consultation, they say, was a “difficult step” for the company, but it’s one that they believe is “necessary so Splash Damage can remain agile and adaptable in what has been a very challenging market.”
This is the second time this year that Splash Damage has faced layoffs. After the cancelation of Transformers: Reactivate, the studio said that it needed to scale down in order to “refocus our efforts on other projects.”
Those efforts included Star Wars: Hunters, a game that released on mobile in June 2024. In January 2025, the game released in Early Access on Windows, but was canceled just two months later with the game shutting down fully on October 1, 2025.
The company’s statement on Wednesday ended with a promise to “explore every option” in order to retain as many employees as possible, while giving support to those who will be let go.
“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,” they said.
Formed in 2001, Splash Damage has worked on a mix of its own games while also co-developing other titles. Games on its resume include Gears of War 4 and 5, Halo: The Master Chief Collection, and Doom 3. Currently, the studio is working on an open-world survival game called “Project Astrid”. That game was announced back in 2023, but no updates have come since.
Insider Gaming has reached out to ask if the sale had anything to do with the layoffs. Should a response be received, it will be added to this story.
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Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
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If you work at this studio, go watch the movie “Office Space”. That might make the process a little easier.