Just Cause developer Avalanche Studios is announcing layoffs and closing its Liverpool studio.
The news comes less than two months after the Swedish company announced its intention to suspension of work on Smugglingis an upcoming co-op game being developed in collaboration with Xbox Game Studios Publishing.
Smuggling was announced back in 2021, but active development was suspended soon after. Microsoft announced large-scale layoffs in July 2025. These cuts affected numerous studios and projects in the company's video game division.
Notably, they also appear to influence on external developers who worked with Xbox Game Studios Publishing.
Didn't mention Avalanche Smuggling or Microsoft when announcing its restructuring plan. The company simply said it was impacted by “the challenges facing our business and industry.”
“We have carefully considered how to best ensure the long-term success of Avalanche Studio Group,” he said. reads a statement published on the Avalanche website. (noticed by Dbltap).
“This review has led us to the difficult conclusion that we must make changes to our staffing and location. As a result, we propose to close our Liverpool studio and begin a collective consultation process as required by UK law. This will affect all Avalanchers in Liverpool.
“The changes will also impact our other studios in Malmö and Stockholm, where we will reduce headcount and restructure teams to meet the needs of our games.”
Avalanche said it will offer support to all employees and remains committed to developing “amazing games.”
