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

The studio was founded by former Avalanche Studios CCO Christofer Sundberg in 2020 and previously received an investment from NetEase.

Chris Kerr, News Editor

February 17, 2025

1 Min Read
The Liquid Swords logo
Image via Liquid Swords

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."

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About the Author

Chris Kerr

News Editor, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.

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