Immutable is the latest blockchain firm to announce job cuts as the gaming company laid off 11% of its workforce.
Major Australian gaming firm Immutable slashed 11% of the company’s headcount, stating that the job cut happened in order to ensure cash reserves last for a long time.
This is the second time Immutable is reducing its workers after the firm axed the number of its employees in July 2022.
Immutable Incurred Losses Worth $56 Million
According to the Sydney Morning Herald on Wednesday (Feb. 22, 2023), Immutable co-founder and CEO James Ferguson announced the layoffs in a note sent to the company’s employees, as seen by the newspaper publication. Ferguson wrote:
“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 said the cuts happened as the firm was looking to extend its cash reserves and use available resources for important projects. Ferguson’s note also stated that the company was carrying out some reorganization, part of which will include contracting the traditional aspects of its game developments to partners in order to shift attention to its crypto and Web3 components.
Furthermore, financial figures submitted to the Australian Securities and Investments Commission (ASIC) show that while Immutable earned $27 million in the past financial year, the firm made expenses valued at $83 million, causing the startup to incur a loss of $56 million.
Meanwhile, Immutable increased the value of its crypto and tokens holdings to $558 million from $500 million, with a spokesperson for the firm stating that it holds $280 million worth of cash on its balance sheet, “giving it more than four years of cash reserves at its current rate of spending.”
More Job Cuts
According to Ferguson, impacted employees will receive a redundancy pay of 10 weeks, laptops, and counseling and will be able to maintain more shares in the company above the limit. Immutable will also extend company-provided healthcare for US workers.
The latest development marks the second time Immutable is slashing its workforce. In July 2022, the company laid off 6% of its employees, including members of the startup’s crypto game, Gods Unchained.