Immutable, a crypto gaming startup valued at $3.5 billion in a funding round that received $280 million from investors in March of last year, informed its personnel on Wednesday morning that 11% of its workforce will be laid off.
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.
Immutable announced various organizational changes in the memo to staff, including entrusting partners with the creation of the standard features of its games. With this move, the company hopes to restructure some of its departments, focus on Web3 and crypto, and direct spending to important areas.
With a spate of high-profile, unrelated failures, like those of the FTX exchange and the Terra/Luna cryptocurrency project, investors have shied away from riskier bets, hurting the overall cryptocurrency market. Investor apprehension over the rise in interest rates was the cause of this change in mindset.
A message would be issued through email to individuals who might be affected by the layoffs, Immutable notified its workforce. It is anticipated that additional information and private meetings will come next. The affected personnel no longer have access to Immutable's systems.
Immutable has grown significantly over the past few years since its founding in 2018 and has its head office in Sydney. Rival startup CEOs have found it difficult to match the company's alluring remuneration packages.