After losing two contracts lately Avalanche Studios are letting 77 people go from their office in central Stockholm. The two cancelled projects were unannounced, and work continues on their two announced titles Just Cause 2 and The Hunter with the remaining staff. The two contracts were worth 34 million dollars and the current financial crisis had an effect on the decisions to cancel the projects. One of the publishers wants to focus more on family friendly games while the other one has no money.
As there are many developers expanding in the region it should be possible for the people losing their jobs to find new employment elsewhere.