Avalanche Studios Layoffs: New York and Montreal Studios Closed
Last Updated: October 31, 2025
Avalanche Studios, the developer acclaimed for the explosive open-world series *Just Cause* and *Mad Max*, has undergone a significant corporate restructuring, resulting in layoffs and the closure of two international studios. The move, which took place in June 2024, followed a prolonged period of silence and speculation surrounding the fate of its anticipated Xbox-exclusive title, *Contraband*.
In an official statement, the company confirmed it had laid off approximately 50 employees, representing about 9% of its total global workforce. As part of the restructuring, Avalanche shuttered its entire New York City studio in the USA and its Montreal studio in Canada. The company's core development teams in Stockholm and Malmö, Sweden, remain operational.
A Necessary Restructuring in a Turbulent Market
Avalanche Studios Group framed the decision as a difficult but essential step toward ensuring the company's long-term health. The layoffs and closures are part of a broader strategy to adapt to a rapidly changing and challenging games industry landscape.
"This is an exceptionally difficult decision, but we believe it's necessary to ensure a stable and sustainable future for the company," an Avalanche spokesperson stated. "Our focus is now on supporting all the Avalanchers affected during this challenging time. We are grateful for the invaluable contributions they have made."
The move adds Avalanche to a long and growing list of game developers and publishers that have conducted mass layoffs throughout 2023 and 2024, reflecting widespread economic pressures and strategic shifts across the industry.
The Shadow of *Contraband*
While the company’s statement did not directly link the layoffs to a specific project, the timing is impossible to ignore. The restructuring occurred after years without any substantive updates on *Contraband*, a co-op heist game announced with a cinematic trailer in 2021 as a major exclusive for Xbox and PC.
The game's development was reportedly led by the New York studio, and its prolonged absence from industry showcases fueled widespread rumors of development issues or a potential cancellation. The closure of the studio primarily responsible for the project is now widely seen as confirmation that *Contraband* has, at the very least, been shelved or is undergoing a fundamental reboot. The high cost and immense resources required for AAA game development mean that the cancellation or major pivot of a flagship title often has severe financial and structural consequences.
What's Next for Avalanche?
Despite the closures, Avalanche Studios continues its work on other fronts. The company's subsidiary, Expansive Worlds, remains a consistent success, continuing to support the popular live-service hunting simulation *theHunter: Call of the Wild*, which maintains a large and dedicated player base.
However, the future is less certain for other announced projects. The Montreal studio was understood to be working on a new, unannounced IP, and its closure casts doubt on that project's status. For now, the developer's primary focus appears to be on its established Swedish studios and the ongoing success of the *theHunter* franchise. The restructuring, though painful, is intended to consolidate resources and position the veteran studio for stability and future creative endeavors in a volatile market.