Palia developer Singularity 6 laying off 35 percent of workforce

Palia developer Singularity 6 has laid off 35 percent of its workforce less than a month after the multiplayer community sim launched on Steam.

The LA studio confirmed the news in a statement to IGN and said the layoffs were the result of an internal evaluation designed to assess what resources it needed to "deliver the highest-quality gameplay service for long-term stability."

"Following Palia's release on Steam, we evaluated the support needed to deliver the highest-quality gameplay service for long-term stability. We made the difficult decision to reduce our workforce, which impacted around 35 percent of our talented and hardworking team members," explained the studio.

"We value their contributions and are committed to supporting them throughout this process, including severance, work-placement and career guidance assistance, and retainment of all company-provided development equipment."

Singularity 6 said the decision to cut jobs wasn't "made lightly" and came after "careful consideration of our development and business needs to support Palia and its community."

"We remain committed to delivering passion in imagination, and maintaining the dedication and creativity that our community expects and deserves," it added. "We appreciate your understanding and support of our studio and affected team members."

Palia launched on Steam on March 25, 2024, after a stint in early access. The free-to-play title currently has a 'mixed' rating on Valve's storefront with over 4,000 user reviews. It has also been available on Nintendo Switch since December 14, 2023.

The cuts at Singularity 6 are the latest in an onslaught of layoffs that have decimated the game industry across 2023 and 2024, with a growing number of studios–including major players like Microsoft, Sony, Unity, and Embracer–all downsizing in the name of sustainability and shareholder value.