In a post to X (formerly known as Twitter), the studio's co-founders Guha and Karthik Bala revealed that the team was working on a big project that an outside partner suddenly canceled. As a result, it might not be able to maintain its current team size; 46 out of 121 employees were given notice they may be laid off in the next 60 days.
https://www.gameinformer.com/2024/03/22/knockout-city-developer-velan-studios-faced-with-impending-layoffs