Palia developers lay off a third of staff just weeks after cosy life sim's Steam launch

A recent development at Singularity 6 has seen a significant reduction in their workforce, with approximately 35% of their employees, believed to be around 49 individuals, being let go. This move comes shortly after the launch of their free-to-play life sim game, Palia, on Steam. The decision to downsize was made in the wake of reassessing the need to sustain the high-quality gameplay and service of Palia for the foreseeable future.
Singularity 6 expressed their stance on this tough decision, emphasizing the importance of streamlining their team to better align with the developmental and business demands necessary to uphold Palia and its player community. They ensured that those affected by the layoffs were not left unsupported, promising severance packages, assistance in job placement, career guidance, and the retention of any development equipment provided by the company during their tenure.
The news of the layoffs was somewhat anticipated within the gaming community, as discussions among the studio’s employees, spanning roles from artists and writers to programmers, emerged on social media platforms. They shared their experiences of sudden job losses, with one developer vividly describing the situation as akin to a major downsizing.
Palia made its way to Steam on March 25th, extending its reach beyond its beta version which has been accessible through the Epic Games Store since the previous year. Reviews on Steam have been mixed, pointing out several bugs and the game’s beta status, despite it not being officially labeled as an early access title.
This occurrence contributes to the expanding tally of workforce reductions in the gaming sector, witnessing significant employment slashes across diverse studios throughout the past year and a half. Among other studios experiencing similar challenges, Relic also announced layoffs this week.
These developments highlight the ongoing adjustments and struggles within the gaming industry to maintain stability and support for both their projects and the professionals dedicated to bringing these gaming experiences to life.