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Avalanche Studios Group closed its Liverpool studio in November 2025 and parted ways with 31 people, after announcing a proposed closure and consultation in September. The sequence followed the company’s August announcement that active development on Contraband had stopped, but Avalanche’s statements do not establish that the game’s stoppage caused the closure.
What happened, and when?
The events unfolded in three stages: development on Contraband stopped while Avalanche evaluated the project; the company later proposed closing its Liverpool studio; and, after consultation, it confirmed the studio had closed.
- August 7, 2025 — development halted pending evaluation. Avalanche Studios Group published an update on Contraband. Its statement, reproduced by Game Developer, said: “Active development has now stopped while we evaluate the project’s future.” That wording announced a stoppage and evaluation, not a final cancellation in that statement.
- September 30, 2025 — Liverpool closure proposed. Avalanche said a review had led it to propose closing the Liverpool studio and begin collective consultation, as required by UK law. The company said the proposal would affect all staff in Liverpool, according to Insider Gaming.
- November 19–20, 2025 — closure confirmed. Avalanche published an update about the Liverpool studio on November 19. Game Developer reported the following day that consultation had concluded, the studio had closed, and the company had parted ways with 31 people. The outlet reproduced Avalanche’s confirmation: “We can now confirm that this process has concluded, that the studio has closed, and that we have parted ways with 31 people.”
How many people lost their jobs?
Game Developer reported that Avalanche parted ways with 31 people in Liverpool as a result of the studio closure. This is the confirmed Liverpool figure, not a total for Avalanche’s other locations.
Did Contraband’s stoppage cause the closure?
The timing is documented, but the cited statements do not confirm a causal link. Avalanche announced the development stoppage in August, then announced the proposed Liverpool closure in September. Game Developer noted that Avalanche had not mentioned Contraband or Microsoft in its restructuring plans. It is accurate to describe the closure as following the stoppage, not as being caused by it.
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Is all of Avalanche Studios Group shutting down?
No. The confirmed closure was of the Liverpool studio, not the whole company. In September, Avalanche also said it planned workforce reductions and team restructuring in Malmö and Stockholm to address the needs of its games. The November reporting cited here does not provide final staffing figures or detailed office outcomes for those locations, so they should not be combined with Liverpool’s 31 departures.
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- PRECISION PERFORMANCE — Stay on target with a hybrid D-pad and textured grips on triggers, bumpers, and back case for improved accuracy and handling.
- SHARE BUTTON: Seamlessly capture and share content such as screenshots, recordings, and more with the new Share button.
- VERSATILE CONNECTIVITY — Connect via USB-C for plug-and-play on console and PC, or quickly pair and switch between supported devices with XBOX Wireless and Bluetooth support.
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- PRECISION PERFORMANCE — Stay on target with a hybrid D-pad and textured grips on triggers, bumpers, and back case for improved accuracy and handling.
- SHARE BUTTON: Seamlessly capture and share content such as screenshots, recordings, and more with the new Share button.
- VERSATILE CONNECTIVITY — Connect via USB-C for plug-and-play on console and PC, or quickly pair and switch between supported devices with XBOX Wireless and Bluetooth support.
- BUILT-IN AUDIO SUPPORT — Plug in compatible headsets using the 3.5mm audio jack for direct voice chat and immersive in-game sound.
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