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Blockchain gaming company Immutable in Australia is seeing another round of lay offs as it has terminated 11 percent of its employees. According to a report, which cited a note to staff from CEO James Ferguson, the need to extend the company's runway and devote resources to its most pressing projects was the cause of the cuts. In addition, the company reorganized some of its divisions and outsourced the development of the more conventional aspects of its games to partners so that it can concentrate on the web3 components.
Poor Financial Figures Behind the Job Cuts
The job losses can be partially explained by reviewing the company figures that were submitted to the Australian Securities and Investments Commission for the previous fiscal year. While these figures are required by law, they may not provide a complete overview of the company's operations. According to the figures, Immutable generated $27 million in revenue but incurred $83 million in expenses, which included payments of around $45 million to employees, consultants, and freelancers. Based on this, the company would have incurred a loss of approximately $56 million for the year. However, Immutable increased the value of its cryptocurrency and token holdings by $500 million, valuing them at $558 million. Many of these holdings were linked to Immutable's own games and projects, and their value is difficult to predict because cryptocurrency markets are highly volatile, especially when selling assets in large quantities.
More About the Immutable Lay Offs
More than 20 employees, or approximately 8% of the company's total workforce, were affected by the developer's summer salary reductions for Gods Unchained, a blockchain trading card game. The studio has garnered numerous funding rounds and high valuations due to its reputation as one of the pioneers of blockchain and NFT gaming. The company previously announced that it would launch a $500 million fund to encourage the adoption of web3 games. It also raised $200 million in Series C funding, achieving a valuation of $2.5 billion. Coinbase Ventures, Animoca Brands, Tencent, and Temasek are just a few of the well-known players that have supported it in the past.