Liquid Swords, the studio founded by Just Cause franchise creator Christofer Sundberg, has announced a round of layoffs, making it the latest NetEase studio to be hit by funding cuts or downsizing efforts.
In a message on the official Liquid Swords website, the studio says the layoffs are part of “an effort to scale back operations and adapt to current business conditions”, which is becoming an increasingly common refrain across the industry.
Liquid Swords goes on to say that the layoffs will go towards ensuring the studio’s “long-term sustainability” as it continues to work on its debut title, so it sounds as though that game – whatever it may be – hasn’t been canceled, at the very least.
Sundberg says that his mission with Liquid Swords is to “build a studio redefining game development with a small, expert-driven team and a sustainable business model”, and that “shifting market conditions” forced him to “part ways with talented individuals”.
Despite this, Sundberg says he and Liquid Swords remain “committed to [their] vision” for the debut game and that work on the project will continue.
The game has yet to be announced, but Liquid Swords says it’s “confident that this extremely unfortunate setback will not prevent it from realizing its original ambition” for the title. Here’s hoping that we get an announcement for it at some point in the future.
Liquid Swords was originally founded back in 2020. Helmed by Sundberg, the studio also includes alumni from franchises like Battlefield, Grand Theft Auto, and Payday.

Unfortunately, Liquid Swords isn’t the only NetEase-funded studio to undergo downsizing or funding reduction in recent months.
Others include Worlds Untold, the studio founded by BioWare veteran Mac Walters, as well as Jar of Sparks, which is headed up by Halo veteran Jerry Hook.
It’s not just NetEase studios, either; other smaller indie outfits are closing their doors or cancelling projects too, including the likes of Casey Hudson’s Humanoid Origin and Dr. Disrespect’s former studio Midnight Society, among many others.