Frostpunk developer 11 Bit Studios is laying off 20 employees

The Alters and Frostpunk developer 11 Bit Studios is laying off 20 employees.

The studio confirmed the news in a statement to Game Developer and explained the changes are being made to “align our team structures with current project phases.”

“We have been able to ensure internal transfers for the majority of our employees so they can continue their careers within the company, and are committed to ensuring that employees leaving the company receive the right support throughout this process,” added a company spokesperson.

The news comes around three months after the studio confirmed the Frostpunk franchise has attracted over 11 million players worldwide. Despite that success, 11 Bit Studios said it has faced significant challenges in recent years.

In 2024, the company cut an undisclosed number of jobs after cancelling an in-development title codenamed ‘Project 8.’ It also quietly laid off eight employees at the end of 2023.

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2025 was described as a ‘tough’ year by the studio, despite Frostpunk 2 nearing 600,000 sales after launching in September 2024.

In a follow-up email to Game Developer, an 11 Bit Studios spokesperson said the studio’s current financial situation is “stable” but that it chose to downsize as it prepares to enter a new production cycle.

“We need to adjust new project teams to current needs, manage our expenses carefully and maintain cost discipline,” they added, before reiterating it managed to secure internal transfers for the majority of employees who were at risk of redundancy.

“Regarding the transfers and numbers, we managed to ensure internal transfers for most of our employees so they could continue their careers within the company. However, for the roles that, unfortunately, could not be carried over into new projects at their early stages, we had to make the difficult decision to part ways with around 20 employees.”