Avalanche Studios Closes Studio, Conducts Layoffs Following Contraband Cancellation

Restructuring Avalanche Studios Group: Closing Liverpool Studio, Reducing Staff in Malmö and Stockholm

Avalanche Studios Group, known for titles such as Just Cause and Mad Max, is undergoing significant restructuring. The company announced on its website that it is closing its Liverpool studio, which opened only two years ago, and reducing staff at its Malmö and Stockholm offices. This decision follows a comprehensive review prompted by "current tough times in the gaming world" and aims to ensure the company's long-term strength. This marks a challenging period for Avalanche Studios Group. In August, Microsoft canceled Contraband, a game the studio had been developing for an extended period. Furthermore, in 2023, the company closed its New York and Montreal offices, affecting 50 employees. The Montreal studio had operated for less than a year. Regarding the current changes, the company confirmed it will impact all staff at its Liverpool office, initiating a collective consultation process as required by UK law. While the company has not disclosed the exact number of job cuts at its Swedish studios, Avalanche Studios Group stated that staffing reductions there are intended to align with the "needs of its games." The company currently employs over 600 individuals across its divisions: Avalanche Studios, Expansive Worlds, and Systemic Reaction.

Unionization and Restructuring Agreement Negotiations at Avalanche Studios (Q2 2025)

This wave of restructuring follows the unionization of more than a hundred Avalanche Studios employees last year. These employees are currently working towards finalizing a collective work agreement with Swedish unions by the second quarter of 2025.