Avalanche Studios lays off 50 people, closes two locations

Smuggling logo.  There is "Leakage" in physical letters inside a straw-lined box.
Avalanche Studios

Nearly 50 people have been laid off from Avalanche Studios Group, the company behind the Just Cause series and the upcoming Xbox console exclusive. Leakageby studio.

In an official blog post In an announcement released Monday, the company also announced it would close two of its five locations: One in New York and the other in Montreal. The exact number of layoffs is unclear, but the post states that “approximately 50” workers are affected, or about 9% of the workforce.

“This is an extremely difficult decision, but we believe it is necessary to ensure a stable and sustainable future for the company,” the post reads.

The studio is currently working on LeakageAn upcoming open-world co-op game published by Xbox Game Studios. It was announced during Xbox's 2021 E3 event, but the trailer showed few details beyond it being set in a fictional 1970s setting and being a “cooperative smuggler's haven.” Director of the play: Ömer Şakir he said in a press release HE Leakage It would be the studio's most ambitious game yet. No other official information about the game has been released since the announcement, nor was it mentioned in the layoff news.

These layoffs will deal another blow to the video game industry in 2024. Leakage publisher Xbox laid off nearly 1,900 workers earlier this year and just last month closed a number of studios, including Microsoft. Hi-Fi Speed developer Tango Gameworks and Arkane Austin. It is unknown whether the Avalanche's firings are related.

Avalanche is probably best known for the Just Cause series, a series of action-adventure and driving-oriented shooter games. The last entry was: Just Cause 4 It was published by Square Enix in 2018. However, the game did not meet expectations and did not sell enough to cover development costsAccording to Square Enix. Other new Avalanche games include: Rage 2 And Generation Zero (under the brand Systemic Reaction). More than 100 developers at the studio unionized last year With the Swedish union Unionen.

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