Avalanche Studios Announces Studio Closure and Job Cuts
Avalanche Studios Group, known for titles like the Just Cause series, has announced the closure of its Liverpool studio and significant layoffs across its organization. This move is part of a broader restructuring aimed at ensuring the company's long-term success amidst challenging times for the games industry.
The decision comes nearly two months after the co-op service game Contraband, a project set in 1970s Southeast Asia focusing on smugglers, was put on hold. While Avalanche Studios has not yet specified the exact number of employees who will be affected, indications suggest a substantial impact. The company has initiated “collective consultations,” a procedure required under UK law when an employer intends to dismiss 100 or more employees.
In an official statement, Avalanche Studios Group explained their rationale:
“In light of the current business challenges our division and the industry as a whole face, we have carefully evaluated how we can best ensure the long-term success of Avalanche Studios Group.
This analysis has led us to the difficult decision to make changes to our staffing and studio locations. As a result, we have decided to close our studio in Liverpool and commence a process of collective consultations as required by UK law. This will affect all members of our Liverpool office at Avalanche. Changes will also affect our other studios in Malmö and Stockholm, where we will be reducing staff and restructuring teams to align with the needs of our games.
Our priority is to provide our full support to all affected Avalanche personnel during this challenging time.
Despite these changes, we remain committed to delivering amazing games to our player communities.”
The future of Contraband remains uncertain. In August, Avalanche representatives stated that the game was not canceled but merely “frozen” while the studio evaluated its prospects. With the closure of the Liverpool studio and widespread layoffs, the game's development path is now even more ambiguous.
This restructuring highlights the ongoing volatility within the video game industry, with many companies facing similar challenges. For players, this news signifies potential shifts in Avalanche Studios' future game pipeline and development strategies. While the company assures its commitment to delivering new games, the immediate focus will undoubtedly be on supporting affected staff and navigating this period of transition.
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