The Australian crypto gaming firm, Immutable, has revealed plans to reduce its workforce by 11%, even though it had already made significant cutbacks in mid-2022. Immutable is recognized for its NFT trading card game, Gods Unchained.
The company had previously laid off 20 employees, or roughly 6% of its staff. However, it seems that this was insufficient to overcome financial challenges arising from the cryptocurrency market’s downturn and to ensure adequate cash flow. As a result, the firm has opted to implement more sweeping job cuts, which were disclosed on Wednesday morning.
According to a message from Immutable’s CEO and co-founder James Ferguson, which was viewed by The Sydney Morning Herald and The Age, the company intends to decrease its workforce by around 11%. Ferguson expressed his regret to all affected staff at Immutable, stating that this was distressing news. As the CEO, he acknowledged that these job cuts would have a direct impact on the lives of many people, and he took full responsibility for the decision.
According to reports, employees will be informed of their redundancy status through email, with individual meetings scheduled afterward. Apart from these intended job cuts, the company is also said to be implementing adjustments to its organizational setup to recover from financial losses.
This involves outsourcing the development of video games to other partners so that Immutable can concentrate on improving its proficiency in Web3 and cryptocurrency technologies. The SMH states that expenditures will also be redirected to new “core areas.”
The streamlined version of Immutable will persist in seeking to dominate the Web3 gaming realm. It will aim to beat the challenges posed by the cryptocurrency market’s instability and the waning interest of early adopters.
Ferguson reportedly informed staff that he believes these difficult decisions will fortify Immutable’s long-term position. This will be by safeguarding the delivery of its road map and sustaining its category leadership. He asserted that the company has unwavering conviction in the substantial opportunity it is pursuing and that there is still much potential for innovation and transformation in Web3 gaming.
It is worth noting that in an early 2022 funding round, Immutable secured a significant investment of AU $200 million, led by Temasek, to support the company’s overall growth objectives. It is uncertain how this funding has been used.