Just Cause developer Avalanche Studios announces layoffs and closure of two studios

Rico Rodriguez in Just Cause parachuting away form an explosion

(Image credit: Square Enix)

Avalanche Studios, the developer of the Just Cause series, has made job cuts across its workforce and is closing two of its studios.

The announcement comes from a statement shared on the company's website, where Avalanche said it will be shuttering its New York and Montreal offices.

These studio closures mean that Avalanche has laid off 50 employees in total, which represents around 9% of its global workforce.

"This is an exceptionally difficult decision, but we believe it’s necessary to ensure a stable and sustainable future for the company," Avalanche said.

"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."

With the closure of New York and Montreal, this leaves Avalanche with three remaining worldwide office locations, including Stockholm, Malmö, and Liverpool.

The two office closures were the most recent to be added to Avalanche over the course of the company's two decades. Montreal's office opened only eight months ago in October 2023, and New York opened in June 2022.

The company didn't offer any details on how it will be aiding those affected by the layoffs.

Avalanche is currently at work developing Contraband in collaboration with Xbox Game Studios, a co-op game set in the fictional world of 1970s Bayan. The project was first announced in 2021 and is set to release on Xbox Series X|S, Xbox Game Pass, and PC.

We've seen a considerable rise in layoffs in the games industry over the past year. Most recently, Lords of the Fallen publisher CI Games laid off 30 workers despite its "best year" on record for revenue.

Microsoft also closed several studios including Hi-Fi Rush developer Tango Gameworks and Redfall's Arkane Austin.