Benzinga - Cryptocurrency gaming start-up Immutable is letting go of 11% of its workforce despite recently raising $280 million in venture capital funding over the past two years.
In a note to staff seen by The Sydney Morning Herald and The Age, Immutable CEO and co-founder James Ferguson explained that the layoffs were necessary to maximize the longevity of the company's cash reserves and allocate its resources to the most critical projects.
Ferguson took full responsibility for the layoffs, saying "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."
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The Australia-based company was valued at $3.5 billion in March 2020.
But, for the past financial year, it had $83 million in expenses and earned just $27 million. Some $45 million went toward employees, consultants, and freelancers.
Immutable is making a series of changes to its organization, including outsourcing traditional aspects of its games to partners, so it can concentrate on the crypto and Web3 components. The company also plans to reorganize some of its divisions and shift spending to its core areas.
Immutable was founded in 2018 and has grown rapidly over the years, offering competitive pay packages that other start-up companies have had a hard time matching. Ferguson wrote that the impacted staff members would be offered an average of 10 weeks' redundancy pay, which is above statutory requirements.
They will also be allowed to keep more shares in the company than required and be provided with laptops, counseling, coaching, and outplacement services.
Staff in the U.S. will have their company-provided healthcare extended.
"We have unwavering conviction in the significant opportunity we are executing against, and we know there is still so much innovation and transformation yet to come for Web3 gaming," he said.
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