Avalanche Studios Faces Downsizing: Liverpool Office Closed, Sweden Hit by Layoffs

By Nathalie Duke Gaming News
1 October 2025 no comments

Avalanche Studios known for Just Cause and Contraband announced that they are closing the Liverpool branch and layoffing off in Sweden

Avalanche Studios is still over rough waters.Just two months ago, Contraband, its highly anticipated in-development title was officially cancelled after Xbox pulled funding. Now, the studio has announced that its Liverpool branch will be shut down, while its Malmö and Stockholm offices will face layoffs.

Avalanche Studios Downsizing

Avalanche has seen better days. Known for the hit Just Cause series, as well as Rage 2, Mad Max, and Generation Zero, the studio has not released much in recent years. Back in 2021, it announced Contraband, a project that drew strong interest from gamers, especially with Xbox backing it.

Fast forward to this year’s Microsoft purge, the game was unfortunately part of the game cancellations. For many, this event would tank or at least affect the studio in a quite a big way. True enough, it did as Avalanche Studio announced that they are closing down the Liverpool branch and will reduce workforce in both Malmo and Stockholm offices.

Avalanche Studios (Contraband, Just Cause) will close its Liverpool studio and reduce its workforce in Malmo and Stockholm https://t.co/feBEA4p8dP pic.twitter.com/f9Phw8foBp

— Wario64 (@Wario64) September 30, 2025

While the announcement only cites “current challenges to business and industry” it’s not rocket science to deduce that the Contraband cancellation was the main cause of the downsizing. No exact number of jobs were confirmed (obviously) but a report suggests that it is a significant percentage of the workforce. It could be remembered too that just last year, Avalanche Studios also closed its New York and Montreal branches. Time will tell what’s in store for the studio’s future.

Where can I buy Just Cause games at the cheapest price?

Allkeyshop can help you score massive savings when you buy Just Cause games simply by using our price comparison tool. It will help you find the cheapest price of video games and subscriptions in real time!

Then to level up your savings even more, apply the exclusive Allkeyshop discount codes with selected merchants which you’ll see in the tool too. And don’t be concerned about location or platform, we’ve got that all covered!

Buying cheap game keys safely is our main goal so not only will you see the lowest game key prices but you also get insights on price history, shop reviews, buyer protection programs if available, and even payment fees for Paypal and credit card.

Nathalie Duke

Sending some gaming news your way from a surfing paradise island. Loves creating content, and researching informative facts and useless trivia. A novice in the gaming industry but a veteran in communications and publication.

Avalanche Studios Faces Downsizing: Liverpool Office Closed, Sweden Hit by Layoffs

5 months ago

Gaming News