Velan Studios, which has 121 employees, is preparing for major layoffs as part of its reorganization.
The New York developer explained on Twitter that an unnamed external partner suddenly canceled the project. Over the next 60 days, 46 employees will be laid off.
“It’s a tough environment for a lot of indie studios. And we, like them, face a very difficult choice.”
Velan was founded in 2016 by the former founders of the Vicarious Visions studio. Their launch title was Mario Kart Live: Home Circuit for Nintendo, followed by Knockout City in 2021 and Hot Wheels: Rift Rally in 2023.
Knockout City was published by EA, but a year after launch the rights reverted to Velan. In 2023, the game went offline, although a private server on PC exists. The company will work to attract new partners and hopes to avoid further layoffs.
“We are grateful to all our employees for their hard work, creativity and dedication “.