Management will restructure teams to meet the needs of current game projects.
Avalanche Studios has announced the closure of its Liverpool office and the reduction of an unnamed number of employees.
In a statement published on the studio's website, Avalanche said the decision was made after an internal review and in light of "current challenges" facing both the company and the gaming industry as a whole.
This review has led us to the difficult conclusion that changes are needed in the staffing and structure of our offices. As a result, we are proposing to close our Liverpool studio and begin a process of collective consultation, as required by UK law. This will affect all employees in Liverpool.
The changes will also affect other Avalanche studios in Malmö and Stockholm, where staff will be reduced and teams restructured to meet the needs of current game projects.
Avalanche Studios was working on the cooperative action game Contraband, which Microsoft canceled in August of this year.
