Sumo Group Layoffs: 15% staff cut, Timbre Games permanently closed

What’s happening at Sumo Group?

Sumo Group, the prominent video game developer, has announced a significant reduction in its workforce, impacting 15% of employees. This move affects staff across various locations, including Canada and Poland. Additionally, the company has decided to close its Vancouver-based Timbre Games studio, putting 100 employees out of work.

Official statements and context

• Sumo Group’s decision follows its participation in the Summer Game Fest, highlighting recent projects and future plans.
• The layoffs and studio closure are part of a strategic realignment within the company.

Quote from Carl Cavers, CEO of Sumo Group: “Whilst Sumo has been able to manage through many of the recent difficulties the games industry has faced, we have not been immune and reshaping operations across the business to better navigate the upcoming challenges expected in the coming months is a path we must now take to ensure the security of the business going forward.”

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• Relic Entertainment Layoffs: 41 positions axed following Sega split
• Microsoft Layoffs: Xbox closing multiple studios, Canadians affected

Industry reaction

• The timing of the layoffs, just a day after Sumo Group’s prominent appearance at the Summer Game Fest, has sparked discussions within the industry.
• Many view this move as a reflection of broader challenges in the gaming sector, including economic pressures and shifting market dynamics.

Ex-employee perspectives

• Lead Talent Partner Jaclyn Adair revealed on LinkedIn the number of people affected and commented on the broader impact of ongoing layoffs in the video game industry.
• “Continued closures like ours will only serve short-term investments, and will, in the long term, degrade the quality and availability of talent in this industry,” Adair said. “These massive industry shifts cannot go without consequences.”
• Other ex-employees shared the news on their profiles as well.

Termination agreements for Sumo Group employees

In Canada, non-unionized employees at Sumo Group are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what the Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance pay for banking sector employees
• Rights to severance for federally regulated workers
• Rights to severance during mass layoffs

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.