Sharkmob Restructuring: What It Means for Jobs in the Gaming Industry

Layoffs at Tencent-Owned Studio

Sharkmob, a studio owned by Tencent, has confirmed planned job losses at its Malmo studio, which is currently developing the sci-fi extraction shooter Exoborne. This follows the effective closure of Sharkmob's London studio in 2024 after staff were made redundant due to the cancellation of an unannounced game.

In a statement, Sharkmob described these changes as "difficult but necessary steps" aimed at sharpening focus on Exoborne's development and positioning the company for sustainable growth. The restructuring is occurring in a challenging environment for games developers, with the company citing the need to align efforts on ongoing projects.

Exoborne, Sharkmob's second release, completed its second public playtest in October, but no release date has been announced. The company has not provided further details, as the process is subject to employee consultation under Swedish employment law, which requires confidentiality and negotiation with union representatives.

Image credit: Sharkmob

Broader Industry Context

These layoffs are part of a larger trend in the gaming industry. Tencent, the Chinese behemoth, recently laid off staff at its Funcom studio after the launch of Dune: Awakening, leading to the closure of The Outsiders studio. In September, Tencent's VP mentioned potential reductions in investment in certain areas, reflecting industry dynamics.

Image credit: Funcom

Additionally, other Chinese publishers like NetEase have implemented cutbacks, resulting in studio closures such as Fantastic Pixel Castle, T-Minus Zero Studios, and Bad Brain Games. This highlights ongoing challenges and restructuring in the global games development sector.