Just Cause developer Avalanche closing two studios and laying off 50 workers

Just Cause developer Avalanche Studios Group has closed its studios in New York and Montreal and laid off 50 employees.

In a brief statement on its website, Avalanche said the layoffs will impact roughly 9 percent of employees worldwide. "This is an exceptionally difficult decision, but we believe it's necessary to ensure a stable and sustainable future for the company," it wrote.

"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."

Avalanche was formed over two decades ago and previously boasted five studios in Stockholm, Malmo, Liverpool, New York, and Montreal. It has worked on franchises including Just Cause, Rage, Mad Max, and theHunter.

Avalanche opens and closes Montreal studio in the blink of an eye

Today's news adds to the ongoing wave of layoffs decimating the video game industry and its workforce, with major companies often citing a need to become more sustainable in the face of a turbulent economy when announcing those cuts.

Avalanche has now joined that cohort, but it won't be lost on some that the company has chosen to shutter its Montreal studio just eight months after it was established.

Avalanche Montreal officially opened its doors in October 2023 after Avalanche acquired and integrated Monster Closet's development team into its studio hierarchy. The Montreal team was tasked with "joining the development of current and future IPs," but has now been put out to pasture.

Prior to expanding in Montreal, Avalanche entered into a collective bargaining agreement with its Swedish employees after a 100-strong group sought to unionize. That two-year contract will apply to all Sweden-based employees and standardize salary and benefit frameworks.