Avalanche Studios Group announces closure of Liverpool studio

Avalanche Studios Group has announced it will close its Liverpool studio, as well as reduce the workforce at its Malmö and Stockholm studios.

The Swedish group – which includes the divisions Avalanche Studios, Expansive Worlds, and Systemic Reaction, and is known for games like Just Cause and Mad Max – had opened its Liverpool studio in 2020.

Avalanche Studios Group published a statement on its website giving news of the studio’s closure, as well as reductions in headcount at its Swedish offices.

“In light of current challenges to our business and the industry, we have thoroughly reviewed how to best ensure Avalanche Studio Group’s long-term success,” reads the statement.

“This review has led us to the difficult conclusion that we must make changes to our staffing and locations. As a result, we are proposing to close our Liverpool studio, and to initiate a collective consultation process, as required by UK law. This will impact all Avalanchers in Liverpool. The changes will also impact our other studio locations in Malmö and Stockholm, where we will reduce our workforce and restructure the teams to address our games’ needs.”

No details were given on the number of people affected. GamesIndustry.biz has contacted Avalanche Studios Group to ask how many people are at risk of redundancy. According to the group’s website, it employs over 600 people.

Back in August, Microsoft paused development on Contraband, a co-op heist game being developed by Avalanche.

Contraband was initially revealed in 2021. At the time, CEO Pim Holfve said: “We’ve had a great relationship with Microsoft, and working with a first party has been intriguing as well, seeing what that actually means in terms of support and getting closer to the hardware.”

Last year, Avalanche closed its offices in New York and Montreal, resulting in 50 people being laid off. The Montreal office had only been opened a year previously, in 2023.

Also in 2023, more than 100 staff at Avalanche Studios unionised. The following year, Avalanche Studios Group entered a collective bargaining agreement with Swedish labour unions, which was due to take effect in Q2 2025.