Australia-based crypto gaming firm Immutable lays off 11% of its staff
- The firm is now focused on maximizing its cash reserves and putting its resources towards the most important projects.
- As per the spokesperson, Immutable has $280 million in cash on its balance sheet.
Leading Australian crypto gaming company Immutable is laying off 11% of its workforce. ‘We will be reducing the size of our team by approximately 11 percent,’ Immutable chief executive officer and co-founder James Ferguson wrote to staff.
The company CEO states the layoffs come as the company needs to maximize how long its cash reserves will last and put its resources towards the most important and relevant projects.
“This is difficult news, and I am sorry to all Immutables impacted by these changes. As CEO, I am deeply aware that these role eliminations will directly impact the lives of many, and I take full ownership for these actions”, the CEO’s letter to staff reads.
As per Australian media reports, financial submissions to the Australian Securities and Investments Commission(SEC) show that Immutable earned only $27 million but had a whopping $83 million in expenses in the past financial year.
According to an Immutable spokesperson, the company has $280 million in cash on its balance sheet, giving it over four years of cash reserves at its current rate of spending. Apart from laying off staff, the gaming firm is also taking various reorganizational measures to help cut unnecessary costs. This includes the planned outsourcing of video game development to alternate partners so that the firm can focus on building expertise in Web3 and crypto technologies.
This is not the first time Immutable is firing staff to navigate its way through liquidity issues. Last year in June, the company undertook a 20-staff redundancy accounting for around 6% of its workforce. In mid-2022, the crypto gaming company also launched a $500 million venture fund focused on Web 3 games and NFT projects,
Apart from Immutable several firms in the Web3 space have been laying off staff to cut costs. Earlier this week, blockchain firm Polygon Labs cut 20% off its workforce, i.e., around 100 employees, citing restructuring efforts.
Last month, Gemini slashed 10% of its headcount in what was at least the third round of layoffs in 8 months. In January, Coinbase Global Inc also reduced its workforce by around 950 employees as part of a restructuring plan.