Sweden's Liquid Swords is making cuts to its workforce. 

In a post on the studio's website, CCO and founder Christofer Sundberg said that this decision had been made due to "the present challenges" facing the games industry.

Liquid Swords was founded in 2020 by the Avalanche Studios founder before attracting funding from Chinese giant NetEase two years later. 

There's no word as to how many staff are affected by this news. 

“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,” Sundberg wrote.

“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.”

Liquid Swords is the latest NetEase-backed venture to face job cuts. In November, Worlds Untold announced it was pausing operations, just months before Jar of Sparks revealed it was doing the same, also to find a new publishing partner.