Aliens Fireteam Elite 2 Developer Hit by Layoffs One Month After Launch

Aliens: Fireteam Elite 2 developer Cold Iron Studios has been hit by layoffs one month after the sequel's release, with Insider Gaming reporting that at least 19 employees were affected.

Parent company Enad Global 7 announced the cuts on September 25, exactly one month after Aliens: Fireteam Elite 2 launched on PC, PS5 and Xbox Series X|S. EG7 did not disclose how many employees were affected.

In its announcement, EG7 said the reduction follows an existing plan to lower Cold Iron's operating costs and put the studio on what it described as a sustainable footing.

The company did not identify which teams or roles were affected. Insider Gaming's figure of at least 19 employees comes from its own reporting, with the outlet estimating from public records that Cold Iron had roughly 50 to 70 employees before the cuts.

That would make the reduction significant relative to the reported size of the studio, although EG7 has not provided an official pre-layoff headcount or confirmed Insider Gaming's figure. The timing is particularly notable because the cuts came exactly one month after Aliens: Fireteam Elite 2 launched worldwide on August 25.

The layoffs also follow a recent change in Cold Iron's ownership.

EG7 completed its acquisition of the studio's business on August 19 through Daybreak Game Company, just six days before Aliens: Fireteam Elite 2 was released. The transaction transferred Cold Iron's staff to Daybreak alongside its technology, development assets, contracts and the licensing arrangement covering its use of the Alien franchise.

The deal brought the studio's development operations directly inside EG7 ahead of the sequel's launch. The original Aliens: Fireteam Elite had sold more than 3.5 million copies by the time the acquisition was completed, giving EG7 an established co-op franchise alongside the incoming sequel.

EG7 says Cold Iron will continue to operate as part of Daybreak following the staff reduction.

EG7 says the remaining Cold Iron team will stay focused on continued development and support for Aliens: Fireteam Elite 2.

That includes the previously announced Nintendo Switch 2 version, which is now scheduled for early 2027. Cold Iron says its immediate focus is on quality improvements and long-term support, with a post-launch roadmap planned for the coming weeks.

The company has also not said whether the smaller team will affect the pace or scope of future updates.