New York developer Velan Studios is cutting jobs as part of a reorganisation.

In a post on Twitter, the company said that 46 members of staff have been told that they might be losing their jobs out of the 121 workers that the firm employs in total. These figures are backed up by a WARN notice filed with New York's Department of Labor. Velan said that it hopes to "rescind as many notifications" as possible, meaning that some of those 46 workers will not be laid off.

This follows an external project being cancelled.

"This is hard, but we can confirm that Velan Studios is in teh early stages of a reorganisation that will most likely result in some amazing people, teammates, and friends leaving the studio," the developer wrote.

"This is a rough environment for a lot of indie studios, and like them, we are faced with some very hard choices."

Velan continued: "This is sad because we have an awesome team who are deeply passionate about their craft. 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 minimise the impact."

Velan was founded in 2019. The firm release its debut title, Knockout City, with EA in 2021, but this project was closed two years later.