11 Bit Studios lays off 20 employees as it prepares for new production cycle

• 11 Bit Studios says the move aligns team structures with current project phases.
• Most affected employees were transferred to other roles within the company.
• The layoffs follow previous job cuts in 2023 and 2024.

The Alters and Beat Cop developer 11 Bit Studios has laid off around 20 employees as it restructures its teams ahead of a new production cycle.

As reported by GameDeveloper, the studio said the changes were made to "align our team structures with current project phases".

It added that the majority of affected employees had been transferred internally so they could continue working within the company, while those leaving would receive support throughout the process.

The studio is known for games including This War of Mine, Moonlighter on Netflix and Anomaly 2 on mobile.

Cost discipline

11 Bit Studios said its financial position remains stable despite the workforce reduction.

In a follow-up statement, the company said it needed to adjust project teams to current development needs while carefully managing expenses and maintaining cost discipline. Moreover, it explained that redundancies related to roles which could not be carried over into new projects at their early stages.

The latest layoffs follow a difficult period for the studio. In 2023, eight employees were quietly laid off, with an undisclosed number of cuts having followed in 2024 after cancelling its in-development title codenamed Project 8.