Avalanche Studios closes studio in Liverpool and lays off 31 employees

On November 19, 2025, Avalanche Studios Group confirmed the official closure of its Liverpool studio, resulting in the layoff of 31 employees. The decision follows a collective consultation process initiated on September 30, 2025, when the Swedish group announced the personnel cuts and restructuring of its operations due to "current challenges" in the industry.

Avalanche Studios Group, known for games like Just Cause and Mad Max, and including the divisions Avalanche Studios, Expansive Worlds, and Systemic Reaction, opened the Liverpool studio in 2020.

The closure of the studio and the workforce reduction in its Swedish offices in Malmö and Stockholm are part of a review to "ensure the long-term success of Avalanche Studio Group". The company employed about 500 people before these cuts.

In August, Microsoft had suspended the development of Contraband, a co-op heist game being developed by Avalanche. Contraband was initially revealed in 2021, with CEO Pim Holfve at the time praising the relationship with Microsoft and the support received.

In 2023, over 100 employees at Avalanche Studios unionized. The following year, Avalanche Studios Group signed a collective labor agreement with Swedish unions, with an expected effective date in Q2 2025.

This wave of cuts is not the first for the company. Last year, Avalanche had already closed its offices in New York and Montreal (opened in 2023), resulting in the layoff of 50 people.

Avalanche Studios Group expressed gratitude to the laid-off employees: "The exceptional talent, passion, and commitment of all those leaving have impacted all projects. We are truly grateful for the dedication and invaluable contributions to the Avalanche Studios Group." The company states that its "focus remains on supporting [employees] during this transition and on continuing to create great games for our player communities."

With the closure of three studios (Liverpool, New York, Montreal) and the freezing of major projects like Contraband, will Avalanche Studios Group be able to stabilize its finances and ensure the longevity of the company under the restructuring model?