Avalanche Studios reports mass layoffs following Xbox cancellation
By Kirk McKeand
Following four years of silence on Contraband, the Xbox exclusive game from Just Cause studio Avalanche, announced in 2021, Xbox cancelled the project along with a host of other exclusives in July this year.
The game was described as "a co-op smuggler’s paradise set in the fictional world of 1970s Bayan" but little was known about it beyond that.
Today, Avalanche announced mass layoffs as a result of the cancellation.
"In light of current challenges to our business and the industry, we have thouroughly reviewed how to best ensure Avalanche Studios Group's long-term success," the company said in a statement.
"This review has led us to the difficult conclusion that we must make changes to our staffing and locations. As a result, we are proposing to close our Liverpool studio, and to initiate a collective consultation process, as required by UK law."
The statement goes on to read that the company will also reduce its workforce in Malmo and Stockholm. Sources close to the situation have told DBLTAP the redundancies will be a significant percentage of the company's current workforce and is a direct result of Contraband's cancellation.
This follows the closure of its New York and Montreal studios last year, resulting in 50 redundancies. "This is an exceptionally difficult decision, but we believe it's necessary to ensure a stable and sustainable future for the company," the company wrote at the time.
"Our focus is now on supporting all Avalanchers through this challenging time. We're grateful for the invaluable contributions of those leaving and remain committed to creating incredible gaming experiences for our players."
The Montreal studio only opened its doors eight months prior to its closure.
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