The studio said in a statement:
“Following the release of Palia on Steam, we evaluated the support needed to deliver a high-quality gameplay experience and long-term stability. We made the difficult decision to reduce our workforce, which impacted around 35% of our talented and hardworking team members. We value their contributions and are committed to supporting them throughout this process, including severance, job placement assistance and career coaching, as well as retaining all company-provided development hardware.”
Palia had been available in beta on the Epic Games Store since last year, and on March 25 it arrived on Steam. The game currently holds a “Mixed” rating (68%), with several user reviews mentioning bugs. In addition, it was stated at launch that the game is in “beta,” although Steam does not label it as an early access version.