The studio behind Just Cause has reportedly closed one of its studios following the cancellation of Contraband. In August, reports emerged that Microsoft had paused development on Contraband, a co-op smuggler game from Just Cause developer Avalanche. At the time, some sources noted that Microsoft put a "hold" on production rather than a full cancellation. But now, Contraband's fate appears to be sealed as mass layoffs at Avalanche have resulted in the closure of its Liverpool studio. Avalanche announced the news on its official site, and disclosed that it means 31 developers are losing their jobs. Per United Kingdom labor laws, Avalanche initiated "a collective consultation process" in September before moving ahead with the layoffs and closing the studio. However, the rest of the company remains intact. "The exceptional talent, passion, and commitment from everyone leaving have impacted every project," reads the message from Avalanche. "We are truly grateful for the dedication and invaluable contributions to Avalanche Studios Group. Our focus remains on supporting the [staff] through this transition and to carry on making great games for our player communities." Contraband was initially announced during an Xbox E3 presentation in 2021. At the time, it was touted as a AAA game set in the 1970s in the fictional country of Bayan. It wasn't the only long-term game that was shuttered by Microsoft this year. Rare's Everwild, the Perfect Dark reboot, and a new MMO from ZeniMax Online Studios were all casualties of a purge of 9,000 people, including Xbox employees. A recent report suggested that Microsoft's struggles to find its footing may be due to sky-high profit goals that have resulted in multiple waves of layoffs at the company. Latest in Contraband Microsoft Cancels Another Xbox Game, Just Cause Dev's Contraband - Report Every Xbox Game Still Coming (We Think) After The Recent Layoffs Xbox's Recent History Of Missing And/Or Canceled Games