Avalanche, the developer behind the Just Cause franchise, has announced the closure of two studios and the layoff of 50 employees.
The studio revealed in a brief statement posted on its website that the layoffs will affect roughly 9% of its employees worldwide. The company added that the decision was an "exceptionally difficult" one but noted that it was necessary to ensure a "stable and sustainable future."
Avalanche Studio Announces Closure, Layoffs
(Photo : Avalanche / Screenshot taken from official website)
Avalanche also said that it was shifting its focus to supporting all "Avalanchers" through this challenging time. It also expressed its gratitude for the invaluable contributions of all of the people who were leaving and those who remained committed to creating "incredible gaming experiences" for players.
The announcement of the studio closures and layoffs comes as Avalanche was formed more than two decades ago. The studio had previously boasted five studios that were located in Stockholm, Malmo, Liverpool, New York, and Montreal.
The latest news also adds to the ongoing series of layoffs that have plagued the video game industry and its workforce. This is as major companies have often cited a need to become more sustainable in the face of a turbulent economy, according to GameDeveloper.
With Avalanche now joining the waves of companies conducting mass layoffs, it is notable for deciding to close its Montreal studio only eight months after it was established. It officially opened its doors in October last year after Avalanche acquired and integrated Monster Closet's development team.
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The Montreal team was then asked to join the development of "current and future IPs" but has not been put out to pasture. Before Avalanche expanded in that particular region, it entered into a collective bargaining agreement with its Swedish employees following a 100-strong group that tried to unionize.
Despite the announcement of the closure and layoffs, it remains unclear just how Avalanche is planning to support the people who have been affected. Other than the Montreal studio, the one located in New York was the second that was closed down, after it was established in June 2022.
Layoffs in the Video Game Industry
The recent wave of layoffs in the video game industry has totaled an estimated 10,000 developers losing their jobs last year alone. Even gaming giants, such as Sony, Microsoft, Riot, and Electronic Arts, have not been safe from controversies, said IGN.
Avalanche is known for some highly popular titles, such as Mad Max in 2015 and Rage 2 in 2019. It was also revealed that the studio is now working on the largely elusive co-op game Contraband for Xbox that promises a "co-op smuggler's paradise" and is its "most ambitious and spectacular game" yet.
Both Rage 2 and another recent title, Just Cause 4, have received mixed reception and failed to provide momentum for the developer. Furthermore, its other smaller projects, including Call of the Wild: The Angler and Ravenbound, were unable to find outright success, said GameRant.
One of the more recent cases of layoffs comes after Rockstar Games parent Take-Two reportedly decided to close down Intercept Games later this month.
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