Rime studio Tequila Works confirms layoffs and game cancellation

Spanish development studio Tequila Works has made a “small” number of layoffs.

It said the move followed the decision to cancel an unannounced project that had been in development at the Madrid-based outfit.

“With deep regret, we must inform of the decision to cancel an unannounced game,” Tequila Works said in a LinkedIn post.

“This tough decision means we will be restructuring the studio to concentrate on the development of only one game. These changes will have an impact to a small number of roles at the studio.

“This is an incredibly difficult time, and our focus is to provide the support and guidance to those affected,” it added.

Tequila Works was founded in 2009 and its debut game was 2012’s Deadlight. Notable releases in the years since have included 2017’s Rime and The Sexy Brutale, and 2019’s Gylt.

Tencent became the company’s majority shareholder in 2022, when Tequila said the funding would be used to fuel studio growth for the development of original IPs.

Its most recent game was last year’s Song of Nunu: A League of Legends Story, which was released under the now defunct Riot Forge publishing label.

Game developer Farhan Noor, who has been tracking job cuts on videogameslayoffs.com, estimates that around 13,000 games industry employees have been laid off so far this year – up from a total of 10,500 in 2023.