The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Media 58 - Publishing activities 58.2 - Software publishing 58.21 - Publishing of video games
80 - 120 jobs Number of planned job losses
Announcement Date
3 October 2025
Employment effect (start)
3 October 2025
Foreseen end date
Description
Avalanche Studios, a Swedish video game developer, has announced that it plans to cut up to 120 jobs worldwide.
The layoffs will affect employees in Sweden and the United Kingdom. The company will cut between 80 and 120 jobs, with the majority of redundancies expected in its Stockholm and Malmö offices Avalanche Studios 2025-SE. Additionally, the Liverpool studio, employing about 50 people, will be closed following the cancellation of the ‘Contraband’ project after Microsoft’s Xbox withdrew its support.
The layoffs follow earlier closures of Avalanche’s studios in New York and Montreal last year, which affected around 50 employees. The company cited difficult market conditions and reduced investment interest across the gaming sector as key factors behind the decision. Avalanche’s downsizing reflects a wider contraction in the Swedish gaming industry, which experienced rapid growth during the pandemic but has since slowed due to weaker demand and the increasing use of artificial intelligence.
Founded in 2003, Avalanche Studios is best known for developing the Just Cause series and Mad Max, and currently operates under the Avalanche Studios Group. Currently, the company employs around 500 people worldwide.
Digitisation and automation technologies, including artificial intelligence (AI), can affect working conditions in a variety of ways and their use in the workplace raises a host of new ethical concerns.
The retail banking sector is fertile ground for studying the impacts of digitalisation on work and employment. Financial services are increasingly provided online, without the intermediary of customer-facing institutions.
European labour markets have recovered strongly from COVID-19. By the end of 2021, little more than 18 months after the start of the pandemic, employment rates in the EU were almost at pre-crisis levels.
