Summary
Liquid Swords, a studio led by Avalanche Studios co-founder andJust Causelead Christofer Sundberg, has announced its plan to lay off an undisclosed number of employees in a bid to “scale back operations” and “adapt to current business conditions.” The American developer was founded by Sundberg in 2020 after he left his role as the Chief Creative Officer ofAvalanche Studiosa year before that.
Unfortunately, the year 2025 is already shaping up to be a forgettable one for certain devs as the industry-wide job cuts continue to ravage the game development landscape. In less than two months, a mixed bunch of companies, ranging from Ubisoft to Crytek, have confirmed layoffs and pointed at the uncertain market conditions as the main reason behind them. These occurrences have not only lost people their jobs but also put the future of certain forthcoming projects, such astheCrysissequel, in doubt. Lately, Liquid Swords also seems to have given in to the same culprit as a restructuring process apparently looms in the company’s near future.
On July 04, 2025, Liquid Swords publicly conveyed its call to let go of an unknown percentage of its employees in the near future, owing to its financial standing and “present challenges” in the industry. Echoing the same sentiment as several other companies that have experienced layoffs over the years, the Sweden-based developer described the move as “deeply regrettable” and explained the motive behind the move to be its “long-term sustainability.” Talking about the job cuts, Sundberg said “shifting market conditions” forced the studio’s hand and that the latter still remains focused on the development of its first-ever game, referred to as “#Game1.” On the other hand, theLiquid Swords teamstudio reasserted its commitment to “simplifying” game development and producing “exceptional” games in the future, in line with Sundberg’s original vision.
Liquid Swords to Carry Out Layoffs as Work on Its Debut Game Moves Forward
It’s worth noting that the restructuring at Liquid Swords comes at a time when the development of its debut project is also underway at the same time. According to the developer’s website, its debut title is an open-world, story-driven, “hardboiled AAA revenge story,” which is being built in Unreal Engine 5. While theJust Causeco-director’s reassurance about the project is a positive sign, it may not be wrong to expect the game’s progress rate to have taken a hit following a reduction in the team’s head count.
Previously, Sundberg’s former workplace, Avalanche Studios, suffered a similar fate in June 2024, as it conducted layoffs of its own. TheMad Maxstudio reduced 9% of its workforceand also shut down a couple of office locations, exiting North America in the process. In addition to theJust Causeseries and theMad Maxadaptation, the developer is also known forRage 2andtheHuntergames.
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