A sad day for the gaming industry: Avalanche Studios, the beloved creators of the Just Cause franchise, has made a difficult decision. The Liverpool studio is no more, and 31 talented individuals have been let go.
This news comes as a shock, especially considering Avalanche's recent announcement of a "collective consultation process" back in September. The company cited a restructuring plan to ensure long-term success, with the Liverpool studio closure being a proposed part of that plan. But here's where it gets controversial: the company's statement yesterday only mentions the Liverpool studio closure, leaving the future of their Malmö and Stockholm locations uncertain.
"The exceptional talent and passion of those leaving have left an impact on every project," Avalanche's statement reads. It's a heartfelt acknowledgment of the hard work and dedication of the affected employees. The company further emphasizes its commitment to supporting its remaining employees through this transition and continuing to create games.
However, there's a notable absence of any mention of Contraband, the upcoming co-op title developed in collaboration with Xbox Game Studios Publishing, or Microsoft in these restructuring plans. This silence raises questions and concerns, especially considering the game's development was paused shortly after Microsoft's mass layoffs in July 2025. Those layoffs had a ripple effect, impacting numerous studios and projects, including external developers like Romero Games.
This isn't the first time Avalanche has had to make tough choices. Last year, they closed their studios in New York and Montreal, laying off 50 employees. It was a difficult decision, but one they believed was necessary for the company's stability and sustainability. At the same time, developers at Avalanche took a stand, forming a bargaining agreement with Swedish unions in 2024. The contract, which began in 2025, is set to run for two years before negotiations resume.
"We've worked hard to make Avalanche a top workplace in the industry," said Stefanía Halldórsdóttir, CEO of Avalanche Studios Group. "Signing a CBA is another step towards that goal."
And this is the part most people miss: the human impact of these business decisions. The gaming industry is a tight-knit community, and the closure of a studio and the loss of jobs affects not just the employees, but the entire ecosystem. It's a reminder that behind every game, there are real people with talent, passion, and dedication.
So, what do you think? Is this a necessary step for Avalanche's long-term success, or is there more to the story? Share your thoughts in the comments below!
