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Just One Month After Xbox's Contraband Cancelation, Developer Avalanche Announces Layoffs and UK Studio Closure Plans
Avalanche Studios will close its Liverpool office and cut staff in the UK and Sweden after Xbox canceled Contraband, impacting a significant portion of its 600 employees.
- On September 30th, Avalanche Studios Group announced it will close its Liverpool studio, UK, and reduce staff at its Malmo and Stockholm studios, Sweden, ahead of a consultation process.
- Contraband, announced in 2021, was paused shortly after Microsoft's July 2025 layoffs and formally canceled last month, with reports tying it to wider Microsoft project cuts affecting Avalanche.
- Proposing to close the Liverpool studio, Avalanche Studios Group will start a collective consultation process affecting Avalanchers, saying `Despite these changes, we remain deeply committed to providing amazing games to our passionate player communities.`
- Sources told DBLTAP that a significant percentage of Avalanche Studios Group’s workforce will be impacted, affecting over 600 employees including those in Malmö and Stockholm studios.
- Microsoft's July restructuring eliminated 9,100 jobs and canceled projects, while last year Avalanche closed its New York and Montreal studios, cutting 50 roles.
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Avalanche Studios shuts down Liverpool office, cuts staff in Sweden
Major changes await Swedish developer Avalanche Studios, the creators behind the Just Cause series, as the company now confirms it will completely shut down its Liverpool office. Alongside the closure, the studio is carrying out a series of staff reductions that will affect its Malmö and Stockholm teams. The announcement comes only two months after the development of Contraband was put on hold. Avalanche states that the restructuring comes "in …
2 months after halting work on its latest project, Just Cause developer Avalanche is closing its Liverpool studio and laying off employees in Malmö and Stockholm
Avalanche, which halted work on Contraband following Microsoft's massive layoffs in July, says the closure and cuts are necessary "in light of current challenges to our business and the industry."
Coverage Details
Total News Sources19
Leaning Left2Leaning Right0Center1Last UpdatedBias Distribution67% Left
Bias Distribution
- 67% of the sources lean Left
67% Left
L 67%
C 33%
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