Avalanche Studios Cuts Staff in Liverpool & Sweden
Avalanche Studios Restructures, Closes Liverpool Studio and Announces layoffs
Overview
Swedish game developer Avalanche Studios, known for the Just Cause series, is undergoing significant restructuring. This includes the closure of its Liverpool studio and layoffs affecting teams in Malmö and Stockholm. The declaration, made on September 30, 2023, follows a recent pause in advancement of thier upcoming title, Contraband. Avalanche Studios’ official announcement details these changes.
reasons for restructuring
Avalanche Studios attributes the restructuring to “current challenges in our business and in the industry as a whole.” This statement suggests broader economic pressures and shifts within the video game market are contributing factors. The timing of the announcement, shortly after the pause in Contraband development, indicates a potential reassessment of project priorities and resource allocation.
Impact of the Changes
The closure of the Liverpool studio directly impacts the employees based there. Layoffs in Malmö and Stockholm will also affect personnel across various teams. While the exact number of employees affected hasn’t been publicly disclosed,the restructuring represents a significant reduction in the company’s workforce. the company has not yet detailed specific support measures for affected employees.
Contraband Development on Hold
The pause in development of Contraband, announced in August 2023, preceded the restructuring announcement.The Verge reported on the development pause, citing a need to refocus on the studio’s core strengths. This suggests a strategic shift away from the open-world co-op action game, at least temporarily.
Avalanche Studios’ Future
Avalanche Studios intends to focus on its core projects following the restructuring. The company did not specify which projects these are, but it is likely to include continued support for existing titles and perhaps new iterations of the Just Cause franchise. The company’s statement emphasizes a commitment to navigating the challenges of the gaming industry and positioning itself for future success.