Just Cause developer Avalanche Studios has announced that it will be closing its UK office and reducing staff across others as part of a major restructuring effort. This move comes not long after development on one of Avalanche Studios' big upcoming games, Contraband, was put on hold by publishing partner Microsoft.
Originally revealed at the Xbox Games Showcase in summer 2021, Contraband was a collaborative effort between Avalanche Studios and Xbox Game Studios Publishing. However, Avalanche went radio silent after the game's initial announcement, showing no new screenshots or footage for over four years. Unfortunately, Avalanche was caught in July 2025's sweeping Xbox layoffs, with Contraband's development being halted indefinitely and the project's future placed under review.
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Avalanche is Shutting Down a Studio and Initiating Layoffs for the Others
The official statement disclosing Contraband's development pause did mention a future update that would clarify whether Avalanche will proceed with the game, and it now appears that won't be happening. In a statement posted on Avalanche's official website, the company has revealed a new restructuring plan that impacts all three of its studios. Bearing the largest brunt here is Avalanche's Liverpool studio in the UK, which will be shuttered entirely. Avalanche opened the Liverpool studio in 2020, and in just five years, it's unfortunately closing its doors forever.
Additionally, workforce reductions are planned for Avalanche's Malmö and Stockholm studios in Sweden, with the latter being the main office for the developer since 2003. According to Avalanche, the decision to close the Liverpool studio and scale back the personnel count for others has been made to ensure the company's "long-term success." Though these restructuring efforts come less than two months after development of Contraband was put on hold, Avalanche made no explicit reference to the game or even the Microsoft layoffs, instead blaming "current challenges" to its business and the broader games industry.
Avalanche's business hasn't exactly been flourishing in recent years either. In June 2024, Avalanche shuttered its New York and Montreal offices, cumulatively laying off 50 employees. As it stands, Avalanche has only two operational offices, both in Sweden and impacted by the aforementioned staff cuts. It's uncertain which projects Avalanche is currently working on now that Contraband looks to be shelved for good, but following the layoffs, it'll likely take a few years for the company to announce anything of substance. Leaks in 2022 suggested that Avalanche was working on a medieval action game dubbed Ravenbound: Tales of Avalt, but it remains to be seen whether the project has survived.
- Date Founded
- March 1, 2003
- Headquarters
- Stockholm, Sweden
- Subsidiaries
- Expansive Worlds
- Known For
- Just Cause