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Monday, July 1, 2024

The Studio Behind Just Cause Series & Xbox’s Next Big Exclusive, Hit with Layoff and 2 Studio Closures

Developer Faces Challenges, Shuts Down Studios Despite Upcoming Release

Times have gotten harder for the employees of Avalanche Studios, the developer behind the Just Cause series and the upcoming Xbox console-exclusive title Contraband. 50 odd workers were laid off and two of its studios in New York and Montreal’s operations were shut down earlier today.

In an official blog, the company announced how the layoffs affected around nine percent of its worldwide workforce. They went on to mention how this was an “exceptionally difficult decision” & that ‘we believe it’s necessary to ensure a stable and sustainable future for the company”

A failed attempt to set things right

The post continued, “Our focus is now supporting all Avalanchers through this challenging time,” the studio says. “We’re grateful for the invaluable contributions of those leaving and remain committed to creating incredible gaming experience for our players.”

As of now, it’s currently unclear how the studio will be supporting those who were affected. The closure of the two studios in New York and Montreal will leave just their three other offices. The internet couldn’t help but look back on the Montreal office which opened back in October 2023, which is just shy of 8 months! 

We believe this could be because of the Rampant hiring trend.

Trend gone wrong

Avalanche Studios layoffs come in exceptionally shocking because their titles have been performing well in the scene with back-to-back hits like Max Max, Rage 2 & their upcoming Xbox exclusive – Contraband.  The trend of layoffs is painful to watch, as rampant hiring in the last 2 years combined with the mild recession is certainly not the best mix. It is believed that nearly 10,000+ developers have lost their jobs in the past year alone, with even renowned names like Microsoft, Twitch, and FACEIT laying off large numbers of staff in the first half of 2024.

More recent examples were Riot Games, Team Liquid & many more organizations in the esports industry laying off their workforces which was covered here.

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