Avalanche closes UK studio as Contraband remains in limbo

In what appears to be the unfortunate fallout from the cancellation of a major project, Just Cause developer Avalanche Studios has announced a significant restructuring. The company is completely shutting down its Liverpool studio in the UK and will be making staff reductions across its remaining studios in Sweden.

This news comes less than two months after publishing partner, Microsoft, cancelled funding for Contraband, a new co-op shooter announced in 2021. Avalanche has not yet confirmed whether the game is fully cancelled but considering this new round of layoffs, it seems likely that the game will no longer come out.

In a statement on its website, Avalanche did not directly mention Contraband, instead attributing the decision to the current situation of the company and the games industry. Additionally, the studio, which only opened its Liverpool branch in 2020, stated that the cuts are being made to safeguard its “long-term success”.

This is the latest in a series of cutbacks for the developer. In June of last year, Avalanche also closed its New York and Montreal offices, laying off around 50 people at the time. This latest move leaves the company with just its two original Swedish studios in Stockholm and Malmö, both of which are also being impacted by the new wave of layoffs.

KitGuru says: With their flagship title seemingly cancelled and the studio now significantly smaller, the future for Avalanche Studios is uncertain. It will likely be some time before we see what the downsized studio is working on next.

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