11 Bit Studio confirmed a round of layoffs affecting 20 employees, about 6‑7% of its 299‑person roster, in a statement to Game Developer. The studio said it avoided larger cuts by transferring staff to other projects, but roles that could not be carried over had to be let go. It added that its finances remain stable and the downsizing is to prepare for upcoming production cycles.

The studio’s hits still perform well. When Frostpunk 2 launched late 2024 it sold 350,000 copies in the first 24 hours, and by April 2026 it had shipped 880,000 copies. The Alters, praised by critics, sold over 545,000 copies and peaked at 18,120 concurrent players on Steam—roughly half the peak of Frostpunk 2.

11 Bit is now working on a new Frostpunk‑universe entry that diverges from the city‑builder style and a revisit of This War of Mine, though details are scarce. The announcement comes amid a wave of layoffs across the gaming industry, including more than 3,000 at Microsoft’s Xbox unit.