Atomhawk, a UK-based outsourcing studio under the Sumo Group umbrella, has closed its Canadian branch and laid off the entire Vancouver-based team.
The company shared the news yesterday via LinkedIn. In a statement, Atomhawk leads said this decision “affects a small team of undeniably brilliant artists, creatives, and friends,” albeit without disclosing the reason behind the decision.
The Canadian studio operated for eight years. During this time, according to the statement, it spearheaded multiple research and development initiatives along with its outsourcing work. Atomhawk’s portfolio includes games like Skate, Age of Mythology: Retold, and Helldivers 2, among many others.
“We want to thank the Canadian team for their passion, dedication, and ideas,” reads the statement. “You will always rock, and as the saying goes: once a Hawk, always a Hawk. Atomhawk will continue to operate from the UK as a creative innovation partner for the games industry, building on the legacy of all past and present Hawks.”
The studio leads also said the company is “supporting all those affected,” but hasn’t disclosed the number of affected employees, nor what the support entails.
“I’m sorry to say that I, along with the entire Canadian Atomhawk team, have been laid off after the closure of the Vancouver studio,” said one of the affected employees on LinkedIn. “I have been a part of that team for the past 3+ years and it’s heartbreaking to see it dissolve.”
Sumo Group decided to focus exclusively on co-development work earlier this year
In February, the UK company stated that it would no longer develop its own properties, instead focusing exclusively on co-development work. Back Sumo said the goal is to balance its creative ambitions with shifting “commercial realities” to deliver long-term stability. It also explained its studios and workforce would be impacted by the transition, but neglected to provide additional details.
The news came six months after Sumo, which is owned by Tencent, laid off 15 percent of its workforce and shuttered Canadian studio Timbre Games.
Back in February, Sumo had 1,500 workers spread across 18 studios in the UK, Canada, India, and the United States — including Sumo Digital, The Chinese Room, Red Kite Games, Auroch Digital, and Atomhawk.
In 2021, the company was purchased by Tencent for $1.27 billion via its Sixjoy Hong Kong Limited subsidiary.
Game Developer has contacted Sumo Group and Atomhawk for more details on the layoffs and studio closure.
