What is the story about?
What's Happening?
Avalanche Studios Group has announced the closure of its Liverpool studio and a reduction in workforce at its Malmö and Stockholm locations. The decision comes as part of a strategic review to ensure the company's long-term success amid current business and industry challenges. The Liverpool studio, opened in 2020, will be closed following a collective consultation process as required by UK law. The company, known for games like Just Cause and Mad Max, has not disclosed the number of employees affected. This move follows a previous closure of offices in New York and Montreal in 2023, which resulted in 50 layoffs.
Why It's Important?
The closure of the Liverpool studio and workforce reductions in Sweden highlight the ongoing challenges faced by the gaming industry, including financial pressures and the need for strategic restructuring. This development could impact the local economies where these studios are based, as well as the employees who face job uncertainty. For Avalanche Studios Group, these changes are part of a broader effort to adapt to market conditions and maintain competitiveness. The decision also reflects the broader trend of consolidation and restructuring within the gaming industry as companies navigate economic pressures and evolving consumer demands.
What's Next?
Avalanche Studios Group will proceed with the collective consultation process in the UK, which will determine the final outcome for the Liverpool studio employees. The company will also continue to restructure its teams in Malmö and Stockholm to align with its current project needs. Stakeholders, including employees and industry observers, will be watching closely to see how these changes affect the company's future projects and overall market position.
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