Key Takeaways
1. Avalanche Studios is closing its Liverpool studio, which had been operational since 2020 and focused on support roles without producing standalone games.
2. The closure will lead to staff reductions at the main offices in Malmo and Stockholm as part of a restructuring effort in response to industry challenges.
3. The company is committed to providing support to affected employees, referred to as “Avalanchers,” during this transition period.
4. This closure follows previous significant layoffs, including the shutdown of offices in New York and Montreal, impacting a total of 50 jobs.
5. The Liverpool studio’s cancellation of the co-op heist game, Contraband, contributes to the uncertainty surrounding the studio’s future projects.
The Swedish company Avalanche Studios, known for creating the Just Cause and Mad Max games, has revealed that it will be closing its Liverpool studio. Along with this closure, there will also be a decrease in staff at its main offices in Malmo and Stockholm.
On September 30, 2025, the studio shared this news through a statement on its website, citing ongoing challenges within the gaming industry. The Liverpool studio, which was opened in 2020 to help expand the company’s global reach, has now stopped all operations. This studio was primarily involved in support roles and had not produced any standalone games.
Company Statement
Avalanche explained:
“We have carefully looked at the issues our business and the industry are facing, and we have come to the hard decision to make some changes to our teams and locations. Therefore, we are planning to shut down our Liverpool studio and begin a collective consultation process as required by UK regulations. This will affect all employees, referred to as ‘Avalanchers’ in Liverpool.”
Moreover, the adjustments will also touch upon the other studios in Malmo and Stockholm, where the workforce will be reduced and the teams restructured to better meet the needs of their games.
Employee Support
The company assured that they are dedicated to providing full assistance to all Avalanchers during this tough period. Even with these structural changes, they reaffirmed their commitment to creating fantastic games for their loyal player base.
As of now, the exact number of employees impacted remains undisclosed. Avalanche Studios Group has more than 600 employees around the globe. This closure marks the third significant move made by the company in just over a year, following the shutdown of their New York and Montreal offices in June 2024, which resulted in 50 job cuts.
Project Cancellation
This news comes shortly after Microsoft canceled the co-op heist game, Contraband, which had been in development by the Liverpool team since it was first announced in 2021. In August 2025, Microsoft halted the development of the game amid significant layoffs, leading Avalanche to confirm that “active development has now stopped.”
Given the current situation, it appears that Contraband may not see the light of day for quite a while. The link on the Avalanche Studios website that previously led to Contraband’s official page now redirects visitors to the Xbox US homepage.
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