Immutable layoffs affect 11% of the staff, citing huge losses
Immutable, a layer-two scaling solution for NFTs on Ethereum, has laid off 11% of its staff following losses of millions of dollars over the past financial year.
Shifting focus to important projects
Immutable has yet again laid off staff, seven months after they first laid off some of their staff. In July, the company laid off more than 20 employees, about 8% of its staff.
James Ferguson, the Immutable CEO, announced that the latest layoff was based on the company’s decision to allocate resources to essential projects and maintain its reserves. In addition, there will be more focus on traditional aspects of its games, and hence their partnerships and outsourcing will be directed to Web3 components and reorganizing some of its divisions.
Workers laid off were offered an average of 10 weeks’ redundancy pay and could keep the laptops they had received. In addition, the US-impacted staff would receive a healthcare extended provision.
Notably, the company had done other layoffs during the 2022 challenging financial market.
Immutable cites huge losses incurred
Over the past financial year, immutable incurred a $56 million loss when its expenses were more than its earnings. The Australian Securities and Investments Commission figures show the firm’s revenue was $27 million, while the expenses were a staggering $83 million. Of that amount, $45 million was used to pay freelancers, consultants, and employees.
Immutable’s spokesperson mentioned, however, that the company’s cash was at $280 million and that it was a long-term IMX token holder. At the time of writing, IMX is trading at $1.06773, a 7% growth in the past 24 hours.
NFT-related companies hit hard
NFT-related companies have also been hit by the crypto winter that saw reduced revenues; hence most are laying off their staff. The most recent one is Magic Eden, an NFT marketplace that laid off 22 of its employees on Feb. 13. The company cited restructures in the company and provided two-month severance to those laid off coupled with retaining the laptops and six more months of healthcare.
SuperRare, another NFT marketplace, laid off 30% of its staff on Jan. 6, whereby they cited unsustainable aggressive growth. The CEO, John Crain, noted that they over-hired. He added that they know there is still much web3 growth incoming despite the ongoing headwinds; hence they will continue building.