2024 has been an unfortunate year for the video game industry, with massive layoffs from indie studios and AAA companies. Not even the likes of Cozy MMOs are protected, with the Palia developers announcing their own cuts.
Multiple ex-Palia developers have taken to platforms like X (formerly Twitter) and LinkedIn to report the layoffs and ask around for new work.
The layoffs seem to affect various areas on the team, including environmental artists, character artists, the narrative writing team, engineers, and more. One of the developers said they received the news they were laid off while on vacation.
One of the developers took to X (formerly Twitter) and said ’49 people Thanos snapped’. This number has since been confirmed by a statement issued to Polygon reporter Nicole Carpenter from Singularity 6—roughly 49 people, 35% of the development team have been axed.
Here’s a copy of the statement below.
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. 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.
This 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.
This news come hot off the launch of Palia on Steam, where it received mixed reviews from the community.
The news of the layoffs and mixed reception from players on Steam paints an uncertain future for the game. Hopefully, Palia can still turn things around with its full release—as the game is currently still in open beta.
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