- Sky Mavis lays off 50 employees to streamline operations for future growth.
- Layoffs are a strategic move, not due to financial instability or poor performance.
- Axie Infinity’s token AXS dropped by 3.78% after the news but later recovered.
Sky Mavis, the developer behind the popular blockchain-based game Axie Infinity, has announced the layoff of 21% of its workforce, translating to approximately 50 employees.
This decision is part of the company’s broader efforts to streamline its operations and focus on its core products.
Layoff wasn’t a result of financial instability
Co-founder and CEO Nguyen Thanh Trung took to X (formerly Twitter) to clarify that the layoffs were a strategic move aimed at positioning the company for future growth. He emphasized that the decision was not a result of financial instability, but rather a realignment of resources to better align with the company’s long-term vision.
Trung noted that the layoffs were not a reflection of the employees’ contributions to Sky Mavis, but were instead necessary to ensure the company’s agility as it focuses on key initiatives for 2025 and beyond.
“The decision to part ways with talented team members was not made lightly,” Trung said. He explained that the move would help the company concentrate on important projects, including the upcoming launch of the Ronin blockchain in Q1 2025, and expansion efforts for the Ronin Wallet and Ronin Network.
Sky Mavis aims to remain focused on the blockchain gaming space, doubling down on what makes the company “truly exceptional” rather than diversifying into new areas.
Sky Mavis’ restructuring efforts come after a tumultuous period, including a devastating hack in 2022 that resulted in a $600 million loss. This led the company to shift from its original play-to-earn model to a free-to-play structure.
Despite these challenges, Sky Mavis is maintaining its commitment to the Web3 ecosystem, continuing to develop Axie Infinity and other products within the Ronin network.
Following the announcement, the price of Axie Infinity’s native token, AXS, saw a notable decline of 3.78% to $7.18 but it has since recovered and climbed to $8.17 at press time.
This news reflects the growing pressure on blockchain gaming companies to adapt to the evolving market while ensuring financial sustainability and product relevance.
