Avalanche Studios Group reveals the shutdown of its Liverpool studio

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

Avalanche Studios Group has announced the closure of its Liverpool branch, along with staff reductions at its locations in Malmö and Stockholm.

The group, known for producing titles such as Just Cause and Mad Max under its divisions Avalanche Studios, Expansive Worlds, and Systemic Reaction, had established its Liverpool office in 2020.

News of the closure and workforce reductions at its Swedish branches was shared through a statement on their website.

"Given the challenges facing our business and industry, we've conducted a comprehensive review to ensure the long-term success of Avalanche Studios Group," the statement outlined.

The review led to the conclusion that changes in staffing and locations are necessary. Consequently, they proposed shutting down the Liverpool studio, impacting all employees there, and reducing staff at Malmö and Stockholm to realign with the needs of their games.

Specific numbers of affected employees were not disclosed. GamesIndustry.biz has reached out to inquire about the number of employees facing layoffs. The company stated it employed about 500 individuals before these adjustments.

In August, Microsoft halted development on Contraband, a cooperative heist game by Avalanche.

This game was first unveiled in 2021. At that time, CEO Pim Holfve remarked on their collaboration with Microsoft, noting it was fascinating to work with a first-party company due to the support and proximity to the hardware it offered.

The previous year saw Avalanche close its New York and Montreal offices, impacting 50 employees. The Montreal location had opened in 2023, just a year before closure.

Additionally, over 100 employees at Avalanche Studios formed a union in 2023. Subsequently, Avalanche Studios Group agreed to a collective bargaining agreement with Swedish labor unions, set to commence in Q2 2025.

Please note, the article has been updated to correct the workforce count from "over 600" to "around 500," per the company's clarification.