Mario Kart Live studio Velan planning layoffs after ‘major project suddenly cancelled’

Velan Studios has warned that it could cut over a third of its workforce after a “major project” was suddenly cancelled.

The New York-based studio behind Mario Kart Live: Home Circuit, Knockout City and Hot Wheels: Rift Rally said 46 of its 121 employees face the prospect of losing their jobs.

The studio, which was formed in 2016 by the founders of Skylanders developer Vicarious Visions, said in a message posted on X that it was in the early stages of restructuring.

“A major project was suddenly canceled by an external partner, which means we may not be able to maintain our full studio size,” it wrote. “Of the 121 current Velan Studios team members, 46 were given notice that they might be impacted by a layoff in 60 days. This is sad because we have an awesome team who are deeply passionate about their craft.

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— Velan Studios (@velanstudios) <a target="_blank" rel=«noopener» class=«link-external» href=«https://twitter.com/velanstudios/status/1770903295625764946?ref_src=» https:>March 21, 2024

“In the near term, we are doubling down on our current games, some of which are scheduled to release later this year, and securing new partnerships to minimize the impact. We hope to rescind as many notifications as possible.

“For those employees who may ultimately be affected, we will do our best to support them through this difficult process,” it added. “We are grateful to all our employees for their hard work, creativity, and dedication.”

Velan’s most recent release was March 2023’s Hot Wheels: Rift Rally, a mixed reality racing game for iOS, PS4 and PS5.

The studio closed its live service dodgeball game Knockout City last June, though a PC version compatible with private hosted servers is available.