The latest in 2025's growing list of layoffs and languishing game studios looks like it will affect Splash Damage, the UK-based game studio that specializes in multiplayer games and experiences and worked on games like Gears 5 and Halo: Master Chief Collection. The studio announced on LinkedIn that it was entering into a studio-wide consultation process that is all but certain to lead to layoffs. According to the announcement, all roles in the studio will be at risk of being made redundant. The studio blames what it calls a "challenging market" for the prospective layoffs and says that layoffs will be necessary in order to ensure that Splash Damage can "remain agile and adaptable."

This is only the start of the process, so there is no word on what the potential severance packages for affected employees might be, but the game studio says it will do what it can to "guide our people through the process with honesty and care." This news comes after a long slew of layoffs that affected employees from smaller outfits, like Avalanche Studios and even massive game studios, like Amazon Games and Microsoft's Xbox gaming division .