Telltale Games, the developer behind upcoming The Wolf Among Us 2 and recently released The Expanse: A Telltale Series, has reportedly laid off a large part of its workforce, according to former Telltale cinematic artist Jonah Huang. The layoff, revealed initially through a post on social media platform X, appears to have affected a significant proportion of the studio. Despite the report, Telltale Games maintains that all its ongoing projects continue to be in production.

Telltale confirmed the layoffs but did not elaborate on the number of employees affected. In the official statement, the studio cited current market conditions as a reason for the workforce reductions. The company regretted having to let go of team members and expressed gratitude for their dedication. Landing support for those impacted, it assured that its commitment to storytelling and finding novel ways to continue doing so remains unchanged.

It's important to note that this is not the first time Telltale Games underwent such layoffs. The original Telltale Games faced similar circumstances leading to its complete shutdown in 2019 after losing investor support. However, only to re-emerge a year later, rebooted by LCG Entertainment, which reinstated many of its previous workers.

The timing of this latest round of layoffs coincides with speculated difficulties in transitioning The Wolf Among Us 2 from Unreal Engine 4 to Unreal Engine 5, leading to its delay. No new release date has been disclosed for this game. Huang also pointed out the layoffs happened soon after the acquisition of the UK-based studio, Flavourworks.

The gaming industry has been experiencing a wave of significant layoffs recently, sweeping across major studios such as Naughty Dog, Team 17, Ascendant, Blizzard, BioWare, Epic Games, and many more.