Avalanche Studios reports mass layoffs following Xbox cancellation

After four years with no updates on Contraband, the Xbox-exclusive game originally announced in 2021 by the Just Cause studio Avalanche, Xbox decided to cancel the project this July, along with several other exclusive titles.

The game was called “a co-op smuggler’s paradise set in the fictional world of 1970s Bayan,” but details about it were scarce beyond that basic description.

Today, Avalanche announced mass layoffs as a result of the cancellation.

Given the difficulties our business and the wider industry are facing, we’ve carefully considered the best way to secure Avalanche Studios Group’s future success,” the company explained in a statement.

After careful consideration, we’ve made the tough decision to restructure our team and offices. This means we’re planning to close our Liverpool studio, and we’ll be starting the legally required consultation process with our team in the UK.

The statement also notes that the company will be cutting jobs in Malmo and Stockholm. People familiar with the matter have informed DBLTAP that these layoffs will affect a substantial portion of the company’s employees and are happening because of the cancellation of Contraband.

This decision comes after the company closed its studios in New York and Montreal last year, which led to 50 job losses. “This is an exceptionally difficult decision, but we believe it’s necessary to ensure a stable and sustainable future for the company,” the company stated previously.

“Our priority now is to support all Avalanchers during this difficult period. We appreciate the important work of those who are leaving and are still dedicated to making amazing games for our players.”

The Montreal studio only opened its doors eight months prior to its closure.

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2025-09-30 16:46