Crypto Gaming Giant Immutable Forced To Lay Off Staff Despite Its Valuation At $3.5 Billion
- Crypto gaming start-up Immutable is making 11% of its workforce redundant despite banking hundreds of millions of dollars in venture capital funding over the past two years.
- Immutable’s CEO and co-founder, James Ferguson, said the layoffs were necessary to maximize cash reserves and prioritize the most important projects.
On Wednesday morning, Immutable – the crypto gaming company valued at $3.5 billion in a funding round that secured $280 million from investors in March last year – informed its staff about the lay-offs of 11% of its workforce, according to The Sydney Morning Herald.
The CEO and co-founder, James Ferguson, explained that the lay-offs were necessary to extend the longevity of the company’s cash reserves and prioritize the most crucial projects.
In the memo to employees, it was revealed that Immutable is implementing several organizational changes, such as delegating the development of the conventional features of its games to partners. This move aims to enable the company to concentrate on the crypto and Web3 aspects, restructure some of its departments, and channel its expenses to key areas.
Over the past year, the entire cryptocurrency sector has taken a hit as apprehensive investors have steered clear of risky investments following a string of unrelated high-profile collapses, such as the FTX exchange and the Terra/Luna cryptocurrency project. This shift in investor sentiment was due to concerns over the surge in interest rates.
Immutable informed its staff that an email would be sent to those who were at risk of being impacted by the layoffs. Further updates and individual meetings are expected to follow. As for affected employees, their access to Immutable’s systems has been terminated.
Since its establishment in 2018 and with its headquarters located in Sydney, Immutable has experienced substantial growth over the past few years. The company has been providing attractive compensation packages, which other startup executives have reportedly found challenging to match.
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