31 developers laid off as Avalanche Liverpool closes following Contraband’s cancellation

Contraband was set to offer a co-op open-world game set in the 1970s

31 developers laid off as Avalanche Liverpool closes following Contraband’s cancellation

31 developers have been laid off from Avalanche Liverpool as the studio confirms it has now closed.

Earlier this year, Avalanche Liverpool announced that it had entered a collective consultation process, as required by UK law. It has now been announced that the studio has closed, and that 31 employees have been let go.

A new statement, posted to the firm’s website on November 19, reads, “As we announced earlier this fall, we initiated a collective consultation process regarding the proposed closure of our Liverpool studio. We can now confirm that this process has concluded, that the studio has closed, and that we have parted ways with 31 people.

“The exceptional talent, passion, and commitment from everyone leaving have impacted every project. We are truly grateful for the dedication and invaluable contributions to Avalanche Studios Group. Our focus remains on supporting the Avalanchers through the transition and to carry on making great games for our player communities.”

Avalanche is best known for the studio behind the Just Cause series, and Contraband was set to offer a co-op open-world game set in the 1970s.

However, although the game was originally announced with a cinematic trailer during E3 2021, nothing had been seen in the four years since that initial reveal.

It was then announced earlier this year that development of Contraband was ‘on hold’, with Avalanche saying “active development has now stopped while we evaluate the project’s future” and that it would “give an update on what’s next as soon as we can”.

This is the latest casualty in Microsoft‘s widespread restructuring. Earlier this year, Microsoft’s gaming division confirmed it was making a fresh round of layoffs, with head of gaming Phil Spencer saying the cuts were designed to “end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness”.

Following the news, it was then confirmed that Microsoft had cancelled Rare’s long-in-development RPG Everwild, as well as Perfect Dark (along with its studio The Initiative).

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