Avalanche Studios Group has announced the closure of its Liverpool branch, part of a broader wave of layoffs and restructuring across its operations in Malmö, Stockholm, and elsewhere.
The move comes following Microsoft’s cancellation of Contraband, a high-profile title that had been in development at Avalanche’s Liverpool location.
In a statement, Avalanche cited “challenges to our business and the industry” and said it had undertaken a careful review of staffing and locations to ensure long-term viability.
Rumors suggest that all staff in Liverpool will be impacted, while the Swedish studios will see workforce reductions and team restructuring to align with project needs.
Avalanche currently maintains studios in Malmö and Stockholm, which are also undergoing “overhauls” as part of the cost-cutting measures.
Avalanche indicated its immediate priority is to support affected employees during the transition, even as it reorganizes its operations to better meet its future game development goals.
