Just Cause Developer Avalanche Shuttering Two Studios and Laying Off 50 Workers

Just Cause franchise developer Avalanche Studios is laying off 50 employees as it moves to shutter its New York and Montreal locations in what it calls an “exceptionally difficult decision.”

The company announced the news in a post on its website, saying that the layoffs in these areas affect nine percent of its worldwide workforce. It says the decision is “necessary to ensure a stable and sustainable future for the company.”

Avalanche Studios Group, the developers of the Just Cause games, are shuttering their studios in New York and Montreal.
Avalanche Studios Group, the developers of the Just Cause games, are shuttering their studios in New York and Montreal.

“Our focus is now supporting all Avalanchers through this challenging time,” the studio says. “We’re grateful for the invaluable contributions of those leaving and remain committed to creating incredible gaming experience for our players.”

It’s currently unclear how Avalanche will be supporting those affected. The closure of its New York and Montreal spots leaves three remaining office locations in Stockholm, Liverpool, and Malmö. Its Montreal location opened only about eight months ago in October 2023, and its New York location opened in June 2022.

A Damaging Trend Continues

Layoffs at Avalanche, which is also responsible for helping create games like 2015’s Mad Max, Rage 2, and the upcoming Xbox-exclusive Contraband game, add to a growing list of layoffs sweeping the industry over the last year. It’s estimated that more than 10,000 developers lost their jobs in 2023 alone, with gaming giants like Sony, Microsoft, Riot, and EA going on to lay off large numbers of staff in 2024 as the year rolls on.

More recent examples saw Take-Two Interactive laying off 579 workers in April and Microsoft closing Bethesda’s Arkane and Tango Gameworks studios in May while Square Enix prepares for its own cost-cutting moves in the U.S. and Europe.

Meanwhile, 100 Avalanche developers managed to join Swedish trade union Unionen last October, and in April, the company agreed to sign a collective bargaining agreement with those who have unionized.

For more, you can read up on why some developers think layoffs have hit as hard as they have over the last year. Then be sure to learn more about the people they layoffs are affecting most.

Michael Cripe is a freelance contributor with IGN. He started writing in the industry in 2017 and is best known for his work at outlets such as The Pitch, The Escapist, OnlySP, and Gameranx.

Be sure to give him a follow on Twitter @MikeCripe.

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