Just Cause Developer Closing Two Studios, Including One That's Only Been Open Since October

Just Cause developer Avalanche Studios Group is shuttering two studios and, as a result, is laying off roughly 9% of its overall workforce, according to a statement on its website. Avalanche is the latest developer to announce studio closures and staff layoffs in a year that seen thousands of layoffs in the gaming industry.

"Since its inception over two decades ago, Avalance Studios Group has grown to encompass five locations worldwide: Stockholm, New York, Malmö, Liverpool, and Montreal. Today, we regretfully announce the closure of two of those locations: New York and Montreal," the statement reads. "This means we'll be parting ways with around 50 valued friends and colleagues, which represents roughly 9 percent of Avalanchers worldwide."

The closure of the Montreal location is especially surprising given the fact that the studio has only been open for about eight months, first opening its doors in October 2023.

On Twitter, current and former Avalanche employees are mourning the decision, including Christofer Sundberg, creator of the Just Cause franchise and founder of Avalanche's headquarters in Stockholm, Sweden. Sundberg left Avalanche in February 2019.

Avalanche recently entered a collective bargaining agreement (CBA) with its Swedish employees, who unionized in the hopes of establishing "standardized frameworks around essential areas such as salaries, benefits, employee influence, and career support."

"This is an exceptionally difficult decision, but we believe it's necessary to ensure a stable and sustainable future for the company," Avalanche's statement regarding the closure of the Montreal and New York studios added. "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 is currently working on a new game called Contraband, which it describes as "a co-op smugglers' paradise set in the fictional world of 1970s Bayan." Little is known about the project--including its release date--but we do know that Contraband will be available on Game Pass at launch.