Sweden's Liquid Swords is reducing its workforce due to challenges in the gaming industry, as stated by CEO Christofer Sundberg. The studio, founded in 2020 and backed by NetEase, has not disclosed the number of layoffs but expressed regret over the impact on employees. Sundberg noted that shifting market conditions have hindered the studio's ability to meet its success timeline, leading to the difficult decision to part ways with talented individuals. Liquid Swords is part of a trend among NetEase-backed ventures facing similar struggles, including Worlds Untold and Jar of Sparks, highlighting the volatility in the gaming industry.