The developer of Palia, Singularity 6, has laid off 35% of its staff.

The news was reported by Polygon reporter Nicole Carpenter – who has since received confirmation from the studio itself - who said that "under 50" employees have been impacted. 

"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 per cent of our talented and hardworking team members," Singularity 6 said in a statement.

"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 decision was not made lightly, and comes 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. We appreciate your understanding and support of our studio and affected team members."

Singularity 6 was founded by veterans of Riot Games in 2018. The following year, the studio landed $16.5 million in funding led by VC ghoul Andreessen Horowitz.

The company released its first game, free-to-play cosy life sim Palia, was released on Epic Games in 2023 before launching on Steam at the end of March.