The Chinese Room confirms layoffs after regaining independence

Update: The Chinese Room has confirmed an undisclosed number of workers were laid off as a result of its split from Sumo Group. In a statement sent to Game Developer, the UK studio said the specifics of the redundancies are confidential and explained it currently employs 55 developers.

“Following the divestment process a number of roles were regrettably made redundant,” said a company spokesperson. “The specifics are confidential but the studio is currently 55 developers. This was a very difficult process as we sought a future for the studio outside of Sumo. No more layoffs are planned as the studio moves forward.”

Original story: Still Wakes the Deep, Little Orpheus, and Everybody’s Gone to the Rapture developer The Chinese Room has regained its independence from Sumo Digital through a management buyout (MBO).

The UK studio said the deal was facilitated by VC firm Hiro Capital and will help secure its future after years operating under the umbrella of Sumo Group, which is owned by Chinese conglomerate Tencent.

The news comes after Sumo Group announced it will be pivoting away from original franchises to focus exclusively on co-development. At the time, the company said studios and workforces would be impacted by that decision but failed to provide specific. A few months later, we heard multiple reports of layoffs being made at The Chinese Room.

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It’s unclear whether the studio downsized prior to the MBO, but we have reached out for comment on the matter. Prior to shifting gears earlier this year, Sumo Group cut 15 percent of its workforce in June 2024 and shuttered Canadian studio Timbre Games.

Newly-independent The Chinese Room pledges to continue building original franchises

The Chinese Room will now continue developing new franchises under the leadership of studio head Ed Daly, who expressed interest in partnering with other studios moving forward.

The turmoil at Sumo Group and The Chinese Room’s subsequent MBO doesn’t seem to have derailed Vampire: The Masquerade—Bloodlines 2, which it confirmed will launch in October 2025 in partnership with Paradox Interactive.

Two other franchises are also in development at the Brighton-based studio.

“This management buyout allows us to scratch the creative itch of continuing to work on new, original intellectual property, but also to partner with other studios on other projects when they fit in with our vision,” sad Daly. “This is what we are doing and we want to carry on doing it, so we’re happy to carry on in this vein.”