Overview of the Restructuring
Avalanche Studios, the Swedish developer best known for the Just Cause series, has announced a broad restructuring that includes closing its Liverpool office and trimming staff at its Malmö and Stockholm studios. The move comes as the company responds to ongoing challenges in the business and the broader video game industry. Avalanche notes that the decision aims to align the studio with current market conditions while continuing to pursue its long-term vision of creating immersive, living game worlds.
Liverpool Office Closure and Consultation
In the United Kingdom, the closure of the Liverpool office will proceed through a formal consultation process in accordance with local employment law. Avalanche has not yet disclosed the exact number of roles affected across all sites, and confirms that staff reductions will be handled in a way that adheres to the required legal steps. The company emphasises its commitment to supporting those impacted while maintaining momentum on its ongoing projects and goals.
Sweden: Reductions in Malmö and Stockholm
Beyond the UK, the restructuring involves significant workforce reductions at Avalanche’s studios in Malmö and Stockholm. While the company has not provided a country-by-country breakdown, the reassessment affects multiple teams that contribute to existing and upcoming projects. The leadership stresses that this is part of a broader pandemic-era shift in the industry, where studios must adapt to changing development rhythms, project scopes, and financial realities.
Contraband and Industry Context
The restructuring follows a separate development pause tied to Contraband, a project announced years ago in collaboration with Xbox Game Studios. Contraband was put on hold earlier this summer amid broader corporate realities at Microsoft. Although Avalanche does not explicitly cite Contraband as a direct cause of the restructuring, industry observers see the pause as a contributing factor to the studio’s reassessment of resources and priorities. Avalanche reiterates its commitment to delivering compelling, living game worlds even as major projects undergo strategic reevaluation.
Past Moves and the Road Ahead
This is not Avalanche’s first round of belt-tightening. Earlier this year, the studio closed offices in New York and Montreal as part of ongoing efficiency measures. The leadership team stresses that the core ambition remains intact: to craft expansive, engaging experiences for players while navigating a volatile market. The company says it will continue to invest in core franchises and in its people, even as some teams face transitions and changes in staffing.
Implications for Employees and Fans
For employees, the immediate concern is stability and support during the transition period. Avalanche says it is reviewing severance, redeployment opportunities where possible, and resources to assist those affected. For fans and partners, the news signals a period of consolidation rather than retreat—an acknowledgment that executional discipline and selective investment are critical to sustaining long-term creative output in a challenging economic environment.
