11 Bit Studios, the Warsaw-based developer behind The Alters and the Frostpunk series, has laid off approximately 20 employees in its latest round of workforce reductions.
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The studio told Game Developer that the cuts were needed to align team structures with current project phases. It described its financial situation as stable and said the majority of affected staff had been moved to other roles within the company.
"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," the studio said in a statement.
11 Bit Studios said the decision was necessary to "adjust new project teams to current needs, manage expenses carefully, and maintain cost discipline." For roles that could not be carried over into new projects at their early stages, the studio said it had to part ways with around 20 employees.
This is the second round of layoffs at the studio in recent years. In 2024, 11 Bit Studios reduced its workforce after cancelling an in-development title codenamed Project 8. More than half of that team were offered other roles within the studio at the time.
The Alters, 11 Bit Studios' most recent release, launched to strong critical reception and solid sales. The sci-fi survival game puts players in control of a crew of alternate-reality versions of the same person, each shaped by different life choices. The game's narrative depth and unique premise earned praise across the industry.
The layoffs come amid a broader wave of workforce reductions across the games sector. Studios of all sizes have been cutting jobs throughout 2025 and into 2026, citing rising development costs, market uncertainty, and the need to restructure around new projects. Industry observers have noted that even studios with successful recent releases have not been immune to the trend.
11 Bit Studios has outlined a broader production pipeline despite the cuts. Its 2026 roadmap includes continued work on Frostpunk 1886 and projects P12 through P15, alongside further support for The Alters and Frostpunk 2. The company says the plan is intended to produce more regular releases while maintaining strict cost and operational discipline.
