Immutable, the Australian crypto gaming company known for NFT trading card game Gods Unchained, has announced it will lay off 11% of its total workforce, despite already making severe cuts in mid-2022.
While the company undertook a 20-staff redundancy in June, accounting for around 6% of its workforce, it appears this wasn’t enough to stave off financial pressures, and a need to maintain cash flow amidst the collapse of the cryptocurrency market. Now, the company is making further cuts, with sweeping redundancies announced on Wednesday morning.
‘We will be reducing the size of our team by approximately 11 per cent,’ Immutable chief executive and co-founder James Ferguson wrote to staff, in a note seen by The Sydney Morning Herald and The Age. ‘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.’
Staff will reportedly discover whether they’ve been made redundant via email, with one-on-one meetings set to follow.
In addition to these planned lay-offs, the company is also reportedly making changes to its organisational structure, in an effort to reclaim financial losses. This includes the planned outsourcing of video game development to alternate partners, so that Immutable can focus on building expertise in Web3 and cryptocurrency technologies. Spending will also be shifted to new ‘core areas’, according to the SMH.
The new, leaner Immutable will continue to pursue dominance in the Web3 gaming space, with hopes it can overcome the volatility of the cryptocurrency market and a slowing interest from early adopters.
‘It is my belief though that these tough choices will strengthen Immutable’s long-term position by protecting road map delivery and ensuring our category leadership,’ Ferguson reportedly told staff. ‘We have unwavering conviction in the significant opportunity we are executing against, and we know there is still so much innovation and transformation yet to come for web3 gaming.’
Notably, the company received a major AU $200 million investment in an early 2022 funding round led by Temasek, to aid the company in its overall growth goals. It’s unclear how this funding has been utilised.