Avalanche Studios Group, known for creating open-world action titles such as Just Cause, Mad Max, and its co-development role on Rage 2, has announced a restructuring that includes studio closures and workforce reductions. The company confirmed it will close its Liverpool branch and downsize teams at its Malmö and Stockholm locations.
The studio stated that these changes are intended to secure the company’s long-term future, though no official figures were shared regarding the number of employees affected. The news adds to the ongoing trend of layoffs across the video game industry, as multiple studios adjust to shifting market conditions.
Impact on Contraband and Ongoing Projects
The announcement comes shortly after Avalanche halted active development on Contraband, a cooperative Xbox-exclusive project in partnership with Xbox Game Studios Publishing. Originally promoted as “a co-op smuggler’s paradise,” the game’s status has been unclear since August, when Avalanche revealed development had been paused for evaluation.
Following the layoffs, the game’s future appears increasingly uncertain. The official Avalanche Studios website link to Contraband now redirects to the Xbox homepage, further suggesting that the title may not move forward in its current form.
Broader Industry Context
Avalanche Studios joins a growing list of game developers facing staff reductions and closures in 2025. While the studio emphasized that the restructuring is aimed at ensuring stability, the decision highlights the challenges developers face as they balance large-scale projects with financial sustainability.
For now, Avalanche Studios continues to operate out of its remaining branches, with its teams in Stockholm and Malmö expected to focus on ongoing and future projects. The company has not announced which titles are currently in active development.
