Several well-known companies laid off employees in 2022 in order to cut costs and stay afloat during the cryptocurrency winter. The new year brought new hope, and the situation was expected to get better.
The reality, however, paints a different picture. Even in 2023, headcount reductions have occurred in rapid succession. Just a day ago, for instance, Polygon Labs announced that it was laying off nearly 100 employees, i.e., 20% of its workforce.
At press time, another similar development has unraveled. Immutable, Australia’s largest cryptocurrency gaming firm, is slashing 11% of its workforce.
Also Read: Polygon Labs Lays off 20% of its Employees
Executive takes “full ownership”
According to the note viewed by media publications, the Chief Executive and Co-Founder James Ferguson highlighted the need to put the start-up’s resources towards the most important projects. Taking full ownership of the latest move, the executive said,
“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.”
A spokesperson for the firm said the company was a “long-term holder” of its own tokens. Reportedly, the cash on its balance sheet sums up to $280 million. That gives the firm more than four years’ worth of cash reserves at its current rate of spending.
Furthermore, the spokesman revealed that the company completed an evaluation of its contractor budgets. At the moment, they have dismissed hiring plans to focus on high-priority areas.
The executive’s note to staff revealed that the cryptocurrency gaming firm is bringing about a host of changes to its organization. It includes outsourcing the development of a few aspects to partners, reorganizing some of its divisions, and shifting spending to core areas. Through these changes, Immutable intends to focus on cryptocurrency and Web3 tangents.
Emphasizing the same, Ferguson wrote,
“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,”
Notably, impacted staff will be offered an average of 10 weeks’ redundancy pay. It is above statutory requirements. Additionally, they will also be allowed to keep more shares in the company than required. Additionally, employees in the United States will have their company-provided healthcare extended.