11 Bit Studios Lays Off 20 Employees in Company Reorganisation

Last week, The Alters and Frostpunk developer 11 Bit Studios laid off 20 employees as part of a recent company reorganization.

The layoffs represent around 8% of 11 Bit Studios’ total workforce, which as of December 2025 stood at 265 employees.

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No Game Pipeline Impact

According to sources close to the company’s plans, it’s understood that the layoffs had no effect on any of 11 Bit Studios’ projects, and the restructuring was mostly in part due to the company’s release pipeline.

As of the time of writing, Frostpunk: 1886 is the only announced project to be getting a release from 11 Bit Studios in 2027. It’s understood that other games are also in very early stages of development and conceptualization.

“As a developer and publisher, we intend to diversify both the scale of our projects and their development timelines. This also means capitalising on near-term, financially attractive opportunities. This underlies our decision to initiate production on the next project set in the Frostpunk universe, which we plan to launch as early as 2027, 11 Bit Studios said on the announcement of Frostpunk 1886.

11 Bit Studios is yet another studio now hit by layoffs this year, with over 70 development teams already being affected this year so far.

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