Avalanche Studios Group Shuts Down New York and Montreal Locations, Affecting 50 Employees

Avalanche Studios Group has announced the termination of operations at its sites in New York and Montreal, with the latter having commenced operations only in October 2023. This decision resulted in the dismissal of 50 employees and impacts 9% of its global workforce.

"We are deeply saddened to confirm the shutdown of two facilities: New York and Montreal," a studio communication revealed. "This decision obliges us to part company with approximately 50 esteemed team members, correlating to about nine percent of our worldwide personnel."

Avalanche Studios Group, not to be confused with Avalanche Software known for Hogwarts Legacy, has gained acclaim through titles like the Just Cause series, 2015’s Mad Max, and Rage 2 released in 2019. The company is in the development phase of Contraband for Xbox, described as an ambitious, visually stunning co-op experience centered around smuggling. The long-term effects of the downsizing and facility closures on Contrabard's development remain uncertain.

The downsizing at Avalanche is reflective of broader turbulence within the gaming industry, characterized by a recent wave of layoffs, studio shutdowns, and canceled projects, impacting major companies such as EA, Sony, Riot, Rockstar, and Microsoft among others. Despite the recent inauguration of one of these studios, the firm maintains that these measures are crucial for its future stability and sustainability.

"We are now prioritizing the welfare of our Avalanchers during this difficult period," the statement added. "We are thankful for the significant contributions of those departing and are dedicated to delivering outstanding gaming experiences to our audience."

In related news, the promising MMO Palia is facing uncertainty after the developing studio enacted a third sequence of layoffs, this instance affecting 40% of its workforce.