Tequila Works laid off several of its staff and canceled an unannounced game. The studio is responsible for developing Rime and Song of Nunu.
The latest news comes as the studio is supposedly undergoing a restructuring phase. The company announced the development in a post on LinkedIn. It noted that it made the decision with "deep regret."
Tequila Works' Layoffs
Tequila Works also tried to explain the cancellation of the unannounced game. It argued that it would allow them to concentrate on the development of only one game.
It added that this marked an incredibly difficult time for the company and its staff. Its focus was on providing support and guidance to affected individuals.
The Madrid-based studio is best known for the development of 2017 puzzle game Rime. It tells the story of a young boy lost on an island. In that same year, Tequila Works also co-developed and published The Sexy Brutale, according to Eurogamer.
Two years later, Tequila Works released Stadia-exclusive Gylt, which later arrived on consoles and PC after the platform was shut down.
The studio's latest title was Song of Nunu: A League of Legends Story. This game was released under the Riot Forge label that shut down earlier this year.
The development comes as layoffs in the video games industry have continued to disproportionately affect workers. There are now an estimated 13,000 individuals affected by the job cuts this year alone.
The shutdown of Riot Forge earlier this year was also a result of Riot suffering its own round of layoffs. At the time, it was revealed that 530 workers lost their jobs at the company, Games Industry said.
Japan's Video Game Industry
Despite the widespread issues in the industry, the Japanese side has been able to avoid much of the effects of the coronavirus pandemic on company stability. In recent years, many of the Asian nation's firms have committed to workers instead of laying them off.
Some have even raised wages, with SEGA increasing salaries by 33% and Koei Tecmo doing the same by 23%. On the other hand, Capcom also raised wages by 27.7% and said that it was an investment in the people who support the future of the firm.
FromSoftware president Hidetaka Miyazaki said that as long as his company is his responsibility, he would not let layoffs become a thing. This resilience is more attributed to Japan's robust labor regulations that protect most workers, according to The Verge.
