UK co-development powerhouse Sumo Digital has confirmed it will be laying off an unknown number of employees.

The Tencent-owned company, which has multiple offices in the UK and others in Europe and India, told GamesIndustry.biz it has commenced a consultation process that will place a number of roles at risk.

It's currently unclear which departments or locations will be impacted by the cuts. Sumo has previously worked on notable titles like Warframe, Gears of War: Reloaded, and Forza Horizon 5.

"Like many other studios, we have had to adapt to ongoing instability, evolving our business to remain resilient and positioned for long-term success," reads a company statement.

"Change often involves tough decisions. So its with a heavy heart that today we have informed our people that certain roles across parts of our organization are sadly at risk of redundancy."

“All active and upcoming projects are unaffected. We remain focused on working closely with our partners to make great games. Were confident the changes we make over the coming weeks will help ensure Sumo is positioned to meet the needs of the video games sector in 2026 and beyond."

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The news come around a year after Sumo announced it would be ditching original franchises to focus exclusively on co-development work. It was a change that ushered in more upheaval at the company just six months after it laid off 15 percent of its workforce.

Shortly after the company announced that business shift, internal publisher Secret Mode parted ways with Sumo to become an independent business. UK studio The Chinese Room, acquired by Sumo in 2018, also regained its independence following a management buyout.

Game Developer has reached to Sumo Digital for comment.