Just Cause Dev Avalanche Studios Group Confirms Liverpool Closure and Workforce Cuts in Sweden

Avalanche Studios Group has confirmed it will close its Liverpool studio while also reducing staff at its Malmö and Stockholm offices.

The Swedish developer, best known for the Just Cause series and Mad Max, opened its Liverpool branch in 2020.

In a statement published on its official website, the company explained that after a thorough review, it had reached the “difficult conclusion” to shut down the UK studio entirely. As required by UK law, a collective consultation process will now begin, impacting all employees based in Liverpool.

"In light of current challenges to our business and the industry, we have thoroughly reviewed how to best ensure Avalanche Studio Group's long-term success," the statement read.

The restructuring will also affect staff in Malmö and Stockholm, where teams will be reduced and reorganized to better align with ongoing projects.

Avalanche’s website notes the group employs more than 600 people globally.

UPDATE 11/20: Avalanche Studios has closed its Liverpool office, resulting in the loss of 31 jobs.

This isn’t the first time Avalanche has faced downsizing. In 2024, the company closed its New York and Montreal offices, resulting in around 50 layoffs. The Montreal branch had only been open for a year before its closure. At the same time, Avalanche employees in Sweden unionized, and by 2025, the studio had entered into a collective bargaining agreement with local labor unions.

The news also follows Microsoft’s decision in August to pause development on Contraband, a co-op heist game that Avalanche had been working on since its reveal in 2021. At the time of its announcement, Avalanche CEO Pim Holfve mentioned "a great relationship" with Microsoft and said it was "intriguing as well" to work closely with a first-party publisher. However, with active development now halted, the future of the project remains uncertain.

Despite these setbacks, Avalanche insists it remains committed to delivering “amazing games” for its community.