Avalanche Studios has confirmed that it is readying to lay off 77 of its employees, about half of the studio’s total workforce. Among those who will most likely be laid off are some members of the Just Cause 2 (Xbox 360, PS3, PC) team.
Avalanche Studios has confirmed that it is readying to lay off 77 of its employees, about half of the studio’s total workforce. In an interview with Edge, the studio’s creative director and founder, Christofer Sundberg, said that the number is “based on what we can afford to keep right now.”
The current economic crisis may have been a contributing factor to Avalanche’s decision, but two publishing deals the studio lost this year may have had a more immediate effect. Avalanche lost a total of US$ 34 million from the two canceled projects.
Sundberg also said that some members of the Just Cause 2 team will “most likely” be among those laid off. Just Cause 2 for the Xbox 360, PS3, and PC has already slipped to a 2009 release, but Sundberg said that development is continuing and the game is “coming along very well.”
Negotiations are still ongoing between Avalanche and its workers’ union, so depending on the outcome there is a possibility that the game will be canceled too. I think Avalanche will try to salvage what it can of Just Cause 2, though, as its continued existence could very well be on the line.