Singularity 6, the development studio behind the life simulation game Palia, has announced significant layoffs, affecting approximately 35% of its workforce. This decision comes just a few months after the game’s open beta release.

In a statement provided to IGN on April 5, Singularity 6 expressed their commitment to ensuring the long-term success and quality of Palia. The studio explained that the layoffs were necessary to align their resources with the ongoing needs of the game.

“After evaluating the support required to maintain the highest quality gameplay service for the long term following Palia’s release on Steam, we have made the difficult decision to reduce our workforce,” the statement read. “This decision impacts around 35% of our talented and hardworking team members.”

Singularity 6 emphasized that the decision to lay off employees was not a reflection of their performance, and they are dedicated to assisting affected individuals through the transition process.

“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,” the statement continued.

Despite the layoffs, Singularity 6 affirmed their continued commitment to supporting Palia and its community.

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

Palia, which entered early access in October 2023, is still in open beta, with plans for ongoing content updates and bug fixes.

The layoffs at Singularity 6 come amid broader industry challenges, with companies across the gaming sector experiencing workforce reductions. With the gaming industry facing continued volatility, studios are making strategic adjustments to navigate changing market conditions and ensure the sustainability of their projects.