Avalanche Shuts Liverpool Studio: 31 Jobs Lost - What Happens Next?!

Avalanche Studios, the folks behind the explosively fun Just Cause series, just announced the closure of their Liverpool studio, and it's a tough blow for the UK game development scene. This news, confirmed yesterday on their official website, comes after a "collective consultation process" that kicked off back in September.

Avalanche Shuts Liverpool Studio: 31 Jobs Lost - W...

What exactly does a 'collective consultation process' mean? Basically, when a company's planning significant changes that affect employees in the UK, they're legally obligated to consult with them first. In this case, it sadly culminated in the studio's closure and 31 layoffs.

Avalanche initially announced this restructuring plan a few months back, framing it as a necessary step to secure their "long-term success." The proposal involved closing the Liverpool branch, and this process was initiated to comply with UK labor laws. It's a pretty somber situation all around.

The company statement acknowledges the impact of these changes, stating, "We can now confirm that this process has concluded, that the studio has closed, and that we have parted ways with 31 people." They go on to praise the "exceptional talent, passion, and commitment" of those affected. It's the kind of statement you expect, but it doesn't make the situation any easier for those who are now out of a job. Avalanche says their focus now is on "supporting the Avalanchers through this transition" and continuing to make games.

Interestingly, this restructuring news followed close on the heels of Avalanche pausing development on Contraband, a co-op title they were working on in collaboration with Xbox Game Studios Publishing. That game, announced back in 2021, seemed promising, but active development halted not long after Microsoft announced their own round of layoffs in July 2025. Those cuts rippled through the industry, impacting numerous studios and projects, including external developers partnering with Xbox. It begs the question: how much did Microsoft's struggles influence Avalanche's decisions?

For now, Avalanche isn't directly linking Contraband or Microsoft to these current restructuring plans. It's worth noting that they also closed studios in New York and Montreal last year, laying off 50 more employees. Back then, they called it an "exceptionally difficult decision" necessary for the company's stability. It sounds like they're doubling down on that strategy now.

One potentially positive note? Developers at Avalanche actually formed a bargaining agreement with Swedish unions back in April 2024. This contract, which started in Q2 2025, is meant to run for two years before renegotiation. Avalanche's CEO, Stefanía Halldórsdóttir, at the time, hoped this would make Avalanche "one of the best workplaces in the games industry." While it's unclear how this agreement will directly impact the laid-off Liverpool employees, hopefully, it provides some measure of protection and support during this difficult period. It's a tough time for the industry, and it's never easy to see studios shutter and talented developers lose their jobs.