Avalanche Studios, known for its work on the Just Cause series, has decided to close its Liverpool studio and implement layoffs at its other locations in Malmö and Stockholm. This decision comes as part of a wider evaluation of the company’s operations in response to challenging conditions in the gaming industry, particularly following significant layoffs and project cancellations orchestrated by Microsoft earlier this year.

The studio’s statement emphasized the need for necessary changes to sustain their long-term success: “In light of current challenges to our business and the industry, we have thoroughly reviewed how to best ensure Avalanche Studio Group’s long-term success.”

These recent developments mark the third studio closure for Avalanche within just over a year, following previous cuts in Montreal and New York. The precise number of affected employees has not been disclosed, but it is clear that these actions are part of a broader trend affecting various gaming studios amid a challenging market landscape.