This is nothing new in the industry and regularly occurs between projects for most companies as some staff become unnecessary for whatever they are working on next. Just Cause 3 is the second project they have been working on, with Mad Max releasing two months ago. While that did spread the company a bit thin, they were confident in their abilities to pull both games off.
A rep told GameInformer in an email: “The transition between major projects is always challenging, especially for independent developers. We have just completed one project and are currently wrapping up another. In starting up our new projects, we were not able to perfectly match the team sizes and skill sets of the previous ones, and we unfortunately had to let some talented developers go.”
12 were let go in New York, and about 12 more were let go in Stockholm. Avalanche are currently hiring once again, though their email almost puts it as if they were rehiring the same people (I highly doubt that’s the case).
“12 developers were given notice in New York. There was a similar number of notices given this summer in Stockholm, but right now we are in the process of rehiring some of those who left. We expect to keep hiring in the new year. This unfortunate event does not affect any of our current projects, and we’re taking measures to avoid situations like this in the future.”
We wish the best of luck to all those who lost their jobs, and hope they get picked up quickly now that their shifts have ended.