Toronto-based developer Mighty Yell has made layoffs. 

In a post over on BlueSky, the studio revealed that it had made an unconfirmed number of employees redundant due to "financial challenges". This news comes as it approaches the release of its next title, All Systems Dance. 

"This is not a decision we came to easily, and we know the impact it will have on our team and community. We want to be as transparent as possible regarding the layoffs, and the difficult state of funding in games," Mighty Yell wrote.

"We are still on track for the release of All Systems Dance, and we will share news about the launch very soon, but right now what's important is supporting our team through this tough time.

"While we wish layoffs could be avoided, we are hopeful that we will get through this difficult chapter and bring as many members of the dev team as possible in the near future."

So far Mighty Yell has launched two games, 2021's adventure title The Big Con and VR game Knight in the Attic from 2023.