In a significant restructuring move, the acclaimed developer behind the Just Cause franchise is closing its UK studio and reducing staff at its Swedish headquarters, marking its third round of cuts in just over a year.
STOCKHOLM, SWEDEN РSeptember 30, 2025 РAvalanche Studios Group, the Swedish force behind open-world hits like Just Cause and Mad Max, has announced a major strategic shift that will see the closure of its Liverpool, UK studio and significant workforce reductions at its core locations in Malm̦ and Stockholm. The move signals ongoing turbulence within the broader video game industry, even for established developers.
The news was delivered via a somber studio update published on the company’s official website, outlining the difficult decisions made to secure the studio's future.
The End of the Road for Avalanche Liverpool
Established in 2020 as part of Avalanche's global expansion strategy, the Liverpool studio was primarily focused on support roles and had not developed a standalone title. Despite this, the closure impacts the entire team, referred to affectionately as "Avalanchers" within the company.
In its official statement, the studio elaborated on the tough choice:
"In light of current challenges to our business and the industry, we have thoroughly reviewed how to ensure Avalanche Studios Group’s long-term success best. This review has led us to the difficult conclusion that we must make changes to our staffing and locations. As a result, we are proposing to close our Liverpool studio and to initiate a collective consultation process as required by UK law. This will impact all 'Avalanchers' in Liverpool."
The statement further confirmed that the changes would extend to its Swedish operations, noting that the Malmö and Stockholm studios would also see a reduction in workforce and a restructuring of teams "to address our games’ needs."
A Direct Link to Contraband's Cancellation
The timing of this announcement is particularly poignant, arriving just one month after Microsoft officially canceled Contraband, the co-op heist game that was being developed primarily by the Liverpool team. The title was first revealed with much fanfare at the Xbox & Bethesda Games Showcase in 2021 but had been in development limbo for years.
In August 2025, Microsoft paused development on the title amidst its own sweeping layoffs, a move that now appears to have been the final nail in the coffin for the project and the team behind it. Avalanche subsequently confirmed that "active development has now stopped." With the Liverpool studio shuttered and the core development teams being restructured, the future of Contraband looks bleak. A visit to the game's official site now redirects to the main Xbox homepage, a silent confirmation of its canceled status.
For fans of Avalanche's signature brand of chaotic, open-world action, this news is a tough pill to swallow. The studio has built a reputation for creating vast playgrounds for destruction, a legacy best exemplified by the Just Cause series, available on Amazon.
A Pattern of Restructuring
This latest action marks the third significant round of layoffs and studio closures for Avalanche Studios Group in a little over a year. In June 2024, the company shut down its New York and Montreal offices, resulting in approximately 50 employees losing their jobs. This pattern highlights the intense pressure and volatility facing game developers worldwide, where even successful studios are not immune to economic headwinds and shifting corporate strategies.
Avalanche Studios Group currently employs more than 600 people across its global offices. The exact number of employees affected by the Liverpool closure and the Swedish layoffs has not been disclosed. The company has stated its focus is now on providing "full support to all Avalanchers during this challenging time" and reaffirmed its commitment to "delivering amazing games to its passionate players" despite the structural changes.
As the industry watches, the question remains how this leaner, restructured Avalanche will navigate its future projects and uphold its legacy of creating some of gaming's most explosive and entertaining worlds.
Post a Comment