Avalanche Studios, best known for the TV series Just Cause, has closed its Liverpool studio, leaving 31 workers redundant.
Announced yesterday via official website of the companythis was an update on the previously announced “collective consultation process” which started back in September. Avalanche then announced a restructuring plan to best ensure “long-term success”, with a proposal to close the Liverpool branch.
Thus, the process was initiated in accordance with UK law. According to the company, these changes will also affect the studio locations in Malmo and Stockholm, although yesterday's announcement did not provide details about these.
“We can now confirm that this process has concluded, that the studio has closed and that we have parted ways with 31 people,” it said in a statement yesterday. “The exceptional talent, passion and dedication of everyone leaving has impacted every project.”
Avalanche adds that its focus remains on “supporting Avalanchers through this transition” and continuing to create games.
Avalanche has not yet mentioned Contraband or Microsoft in its restructuring plans.
News of the restructuring back in September came less than two months after the company announced its intention. suspension of work on Smugglingis an upcoming co-op game being developed in collaboration with Xbox Game Studios Publishing.
Smuggling was originally announced back in 2021, but active development was suspended shortly after. Microsoft announced a series of layoffs in July 2025. These cuts have affected numerous studios and projects in the company's video game division, and it also appears influence on external developers who worked with Xbox Game Studios Publishing.
At the moment Avalanche has not yet mentioned Smuggling or Microsoft in these restructuring plans.
Last year the Avalanche closed its studios in New York and Montrealwhile firing 50 employees. At the time, the company called it an “exceptionally difficult decision” but considered it “necessary to ensure the company's stable and sustainable future.”
At the same time, Avalanche developers formed negotiation agreement with Swedish trade unions in April 2024. The contract took effect in the second quarter of 2025 and will last for two years before negotiations resume.
“Over the past years, we have taken significant steps to make Avalanche one of the best workplaces in the gaming industry,” Avalanche Studios Group CEO Stefania Halldórsdóttir wrote at the time. “We hope that the signing of the CBA will be another step in that direction.”
