Avalanche Studios Group reveals the shutdown of its Liverpool studio

Mad Max 2015 game screenshot — Image credit: Avalanche Studios/WB Games

Avalanche Studios Group is set to shut down its Liverpool branch and downsize the employee count at its Malmö and Stockholm locations.

This Swedish gaming conglomerate, best known for titles such as Just Cause and Mad Max, operates under several divisions, including Avalanche Studios, Expansive Worlds, and Systemic Reaction. The Liverpool studio began its operations in 2020.

The company has issued a statement on its official website detailing the closure of the Liverpool studio and headcount reductions in Sweden.

The statement mentions, "Amid current business and industry challenges, we've undertaken a comprehensive review to secure the long-term future of Avalanche Studio Group."

It continues, "This assessment has led to the tough decision to alter our staffing and locations. Consequently, we're considering closing our Liverpool office and starting a collective consultation process as per UK law, affecting all employees there. Workforce reductions will also take place at our Malmö and Stockholm sites, restructuring to better align with our game development needs."

Information on how many employees will be impacted remains undisclosed. Avalanche Studios Group had approximately 500 staff prior to these changes, and further inquiries have been made by GamesIndustry.biz regarding the number of positions at risk.

Recently, development on Contraband, a co-op heist title by Avalanche, was paused by Microsoft. This game was introduced in 2021, with CEO Pim Holfve earlier noting, "Our partnership with Microsoft has been excellent, and it has been enlightening to work closely with a first party and understand the implications for support and engagement with the hardware."

The previous year saw the closure of Avalanche's offices in New York and Montreal, resulting in the layoff of 50 staff members. The Montreal office had been operational for just a year when it was shut down.

In 2023, over 100 employees from Avalanche Studios formed a union. Following this, a collective bargaining agreement with Swedish labor unions was established, set to be effective by mid-2025.

The article has been updated to correct the number of individuals employed by Avalanche Studios Group from "over 600" to "around 500" following clarification from the company.