Tequila Works Hit With Layoffs

Tequila Works Hit With Layoffs

Key Takeaways

  • Tequila Works laid off a few employees after canceling an unannounced game, focusing on one title moving forward.
  • The studio, with around 160 employees prior, likely expanded after Tencent’s investment in 2022.
  • Game development studios like Tequila Works are faced with industry-wide layoffs, prompting calls for unionization.

As a dedicated follower of the gaming industry and someone who has witnessed the rise and fall of numerous studios, I can’t help but feel a pang of sadness upon hearing about Tequila Works’ recent layoffs. Known for their unique and captivating titles like Deadlight, The Sexy Brutale, Rime, and more, it’s disheartening to see such a talented team facing these challenges.


Independent game studio Tequila Works, based in Madrid, has experienced layoffs following the cancellation of an unnamed project. Renowned for critically acclaimed indie games such as Deadlight, The Sexy Brutale, and Rime, Tequila Works is one of the more distinguished indie development studios in the gaming industry. Their portfolio includes 2017’s The Invisible Hours, a title for Google Stadia, as well as Gylt. Most recently, they collaborated with Riot Games on Song of Nunu: A League of Legends Story, which was released last year.

Over the past year and a half, it’s regrettably true that game development studios – big and small – have had to make substantial reductions in their workforce. Notable corporations like Embracer Group, Unity Software, Electronic Arts, as well as platform holders Sony and Microsoft, have let go of thousands of employees. Xbox, for instance, even shut down four of its Bethesda studios earlier this year, including Arkane Austin, the studio behind Dishonored, and Tango Gameworks, the creator of Hi-Fi Rush. Fortunately, Tango Gameworks was saved by a Korean publisher named Krafton.

In the latest series of industry-wide challenges, Tequila Works has announced some tough decisions via LinkedIn. The team informed their audience that they’ve had to scrap a project yet to be disclosed, resulting in the termination of a few roles connected to it. As part of an overall studio reorganization, Tequila Works also shared that they will now concentrate on a single upcoming game.

Tequila Works Cancels Project, Eliminates “Small Number of Roles”

It’s unknown how many employees were cut from Tequila Works as part of its game cancelation, but the studio had been home to around 160 employees prior. The studio likely grew in numbers after investment from Tencent in 2022. It’s also not known how many projects the studio had in the works before this cancelation, but judging by the LinkedIn post, it seems like Tequila was working on two games simultaneously, the canceled project and the one it’s now shifting its focus toward. What the game is and how long it’s been in development are two unknowns that likely won’t be answered anytime soon.

I’m hoping that the affected individuals from Tequila Works’ layoffs will recover swiftly. It’s hard to predict when the game industry will regain balance, but efforts are being made to unionize at big companies such as Bethesda Game Studios, CD Projekt Red, Raven Software, Avalanche Studios, and Sega of America. It would be beneficial if more small independent studios like Tequila Works also joined forces to safeguard their future.

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2024-10-08 20:44