Avalanche Studios Announces Layoffs, Closure of Liverpool Studio

Malmö and Stockholm studios will face layoffs and restructuring due to the "current challenges to our business and the industry."

Posted By | On 30th, Sep. 2025

Avalanche Studios

After active development on Contraband was halted, Avalanche Studios has announced layoffs and the shuttering of its Liverpool studio. In a new statement on its website, the company cited the “current challenges to our business and the industry,” and how it “thoroughly reviewed” the best ways to ensure the studio group’s success.

“This review has led us to the difficult conclusion that we must make changes to our staging and locations. As a result, we are proposing to close our Liverpool studios, and to initiate a collective consultation process, as required by UK law.” Studios in Malmö and Stockholm will see workforce reductions and restructuring to “address our games’ needs.”

Avalanche Studios is best known for the Just Cause franchise, but it also worked on Mad Max, RAGE 2 and theHunter series. Its last project, Contraband, was announced back in 2021 in collaboration with Xbox Game Studios, with over 150 developers on board.

As if rumors of development problems and layoffs at the company last year weren’t enough, Xbox Game Studios would seemingly cancel the project following its own mass layoffs in July. Perfect Dark, Everwild and Project Blackbird were cancelled after years of development, while The Initiative shut down. Turn 10 Studios, Undead Labs, and many more also saw hefty layoffs.

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


Keep On Reading!

GTA 6 is the Most Pre-Ordered Title in History on the PlayStation and Microsoft Stores

GTA 6 is the Most Pre-Ordered Title in History on the PlayStation and Microsoft Stores

With nine days left before its worldwide launch, Sony and Xbox have confirmed that Rockstar Games' latest has ...

Former PlayStation Boss Believes Auteurs Like Hideo Kojima, Neil Druckmann “Built This Business”

Former PlayStation Boss Believes Auteurs Like Hideo Kojima, Neil Druckmann “Built This Business”

He said that the "creative genius" of these auteurs tends to result in some of the most memorable experiences ...

NBA 2K27 Sold 4 Million Copies, Missed Sales Expectations Due to GTA 6, Says Take-Two CEO

NBA 2K27 Sold 4 Million Copies, Missed Sales Expectations Due to GTA 6, Says Take-Two CEO

He didn't seem too worried though, noting that he's glad one of Take-Two's other outings is cannibalizing sale...

GTA 6 Pre-Load Trailer Showcases SWAT Team, Backflipping, and a New Tove Lo Song

GTA 6 Pre-Load Trailer Showcases SWAT Team, Backflipping, and a New Tove Lo Song

Vice City continues to look like the place to be ahead of the game's worldwide launch on November 19th for Xbo...

Killing Floor 3 Studio Announces Layoffs Affecting 36 Employees

Killing Floor 3 Studio Announces Layoffs Affecting 36 Employees

In a statement, the company has said that the layoffs was "certainly not an easy decision, but unfortunately a...

Nintendo Switch, Switch 2 Latest Update Prepares eShop For Gifting System, Launches on November 16th

Nintendo Switch, Switch 2 Latest Update Prepares eShop For Gifting System, Launches on November 16th

In true Nintendo fashion, however, the gifting feature has some strict requirements, like needing both parties...