Liquid Swords, the video game studio founded by Avalanche Studios founder Christofer Sunberg, has announced its plans to hold layoffs at the company.
The announcement was made via a post on the studio’s website.
According to the announcement, the decision was made after an “evaluation of Liquid Swords’ financial situation and the present challenges of the video game industry.” It was added that the moves are being done to “ensure the studio’s long-term sustainability”.
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“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,” Sunberg said. “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.”
There was no mention of the number of people being let go nor how many people remain with the company. Insider Gaming has reached out to Liquid Swords for clarification after this round of layoffs.
Sundberg added that the studio “remains focused” on its vision of “simplifying the game development process to create exceptional gaming experiences for players.”
Liquid Swords is currently working on its first game, which is described as “a narrative-driven, open-world, hardboiled AAA revenge story” that is developed in Unreal Engine 5. No other details on the game are known.
In 2025, there have been nearly 1,000 estimated jobs lost due to layoffs a cross 30 companies.
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