Splash Damage, the UK studio behind Gears Tactics and Halo: The Master Chief Collection, has entered a consultation process that puts all roles at risk of redundancy.
In a statement, the studio called the move a "difficult step" necessary to remain "agile and adaptable" in a challenging market. Splash Damage said it will explore options to retain talent and support affected staff.
This comes after setbacks in 2025, including the cancellation of the high-profile project Transformers: Reactivate, which previously led to layoffs.
The studio was working on a survival game in partnership with content creators Shroud and Sacriel. No word on the status of that project yet.
The studio also recently changed ownership, being acquired by private equity investors after splitting from its former parent company.
The exact number of potential layoffs is unknown, as the consultation process impacts all roles.
Source: GamesIndustry.biz