Avalanche Studios Group has announced significant restructuring plans that will see 50 employees laid off and its US and Canadian studios closed.
The move will result in the company reducing its total workforce by approximately nine percent.
Avalanche will shut its New York and Montreal studios, leaving it with locations in Stockholm and Malmo in Sweden, and Liverpool in the UK.
“This is an exceptionally difficult decision, but we believe it’s necessary to ensure a stable and sustainable future for the company,” Avalanche said in a statement.
“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, which celebrated its 20th anniversary in 2023, specialises in open-world games. As well its Just Cause series, it developed 2015’s Mad Max and co-developed 2019’s Rage 2 with id Software.
It only announced plans to open its Canadian office last October, following the acquisition of Monster Closet, a Montreal-based studio founded in 2021 by a team of veteran game developers with a shared history of working at Ubisoft.
Avalanche is currently working on Contraband, which is set to be published by Xbox Game Studios for console and PC.
The new IP, which is billed as “a co-op smuggler’s paradise set in the fictional world of 1970s Bayan”, will reportedly be focused on vehicular combat.