Following a prior announcement from Avalanche Studios that the company was considering layoffs and shuttering its Liverpool studio, Avalanche has done just that. In an announcement on the studio's website, it recently announced that it has closed its Liverpool studio, explaining that the closure has resulted in 31 layoffs. Avalanche says that the studio's priority is to "continue supporting Avalanchers through this transition and to carry on making great games for our player communities."

The announcement comes shortly after Avalanche's upcoming game, Contraband, was cancelled earlier this year. The layoffs and studio closure were justified by executives as a way to ensure the long-term success of the company. The future of Avalanche's Stockholm studio is unclear as well, since that location was also mentioned in the original layoff announcement, but the company was seemingly only going to conduct layoffs at that branch and not close the whole thing.