Liquid Swords confirms layoffs after pledging to implement 'sustainable work model'Liquid Swords confirms layoffs after pledging to implement 'sustainable work model'

Liquid Swords is laying off an undisclosed number of employees to "adapt to current business conditions."

The Swedish studio was established by former Avalanche Studios CCO and founder Christofer Sundberg in 2020. Its debut title is being pitched as a "narrative-driven, open-world, hardboiled triple-A revenge story, built and developed in Unreal Engine 5."

A statement issued by the studio indicates the project remains in development, but that layoffs are necessary to deliver "long-term sustainability."

"I promised our employees and shareholders success and to build a studio redefining game development with a small, expert-driven team and a sustainable work model," said Sundberg.

"While we achieved much of this, shifting market conditions prevented us from succeeding within our timeframe. As a result, we must part ways with talented individuals who have been instrumental in our journey. This is incredibly difficult, but we remain committed to our vision and will continue to work on our IP and first game with a dedicated team."

An FAQ on the studio website indicates Liquid Swords intended to scale to 100 workers by early 2024, although it's unclear whether that target was achieved. 

Those expansion plans were announced after NetEase made an undisclosed investment into the studio to help realize its vision of implementing a "quality-focused approach to game development." That, apparently, remains the goal.

"Despite these regrettable changes, Liquid Swords remains focused on Sundberg's vision of simplifying the game development process to create exceptional gaming experiences for players," continues the statement.

"The studio is confident that this extremely unfortunate setback will not prevent it from realizing its original ambition."