Avalanche Studios Announces Layoffs, Closure of Liverpool Studio

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Following the cancellation of development on Contraband, Avalanche Studios has announced job cuts and the closure of its Liverpool office. In a recent statement posted on its website, the company explained that it faced “current challenges to our business and the industry,” and that it had “thoroughly reviewed” options to secure the studio group’s future.

After careful review, we’ve made the tough decision to update how and where we work. This means we plan to close our studios in Liverpool, and we’re starting the legally required collective consultation process in the UK. Additionally, our studios in Malmö and Stockholm will be restructured and will see some workforce reductions to better support our games’ needs.

Avalanche Studios is famous for the Just Cause series, but they’ve also created games like Mad Max, RAGE 2, and the theHunter series. Their most recent game, Contraband, was revealed in 2021, and is being developed together with Xbox Game Studios, with a team of more than 150 developers.

On top of last year’s reports of difficulties and job cuts, Xbox Game Studios appeared to halt the project after further layoffs in July. Perfect Dark, Everwild and Project Blackbird were all cancelled after several years of work, and The Initiative was closed down. Turn 10 Studios, Undead Labs, and numerous other studios also experienced significant layoffs.

Avalanche Studios Group hasn’t discussed its next title, so stay tuned for updates.

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2025-09-30 20:41