Immutable, a major Australian gaming company, has slashed 11%. The company stated that this was done to make cash reserves last a long time.
After the company’s July 2022 layoffs, Immutable has now reduced its workforce for the second time.
Immutable incurred losses worth $56 million
The following is an extract from the Sydney Morning Herald James Ferguson, Immutable CEO and co-founder, announced the layoffs Wednesday 22 February 2023 in a letter sent to employees. The newspaper published the note. Ferguson wrote:
“This is hard news. I am sorry for all the Immutables who have been affected by these changes. As CEO, I am acutely aware of the direct impact these changes will have on the lives and livelihoods of many. I also take full responsibility for these actions.
According to the CEO, the company was trying to increase its cash reserves and make use of available resources for critical projects. Ferguson’s note stated that the company was undergoing a reorganization. This will include outsourcing traditional game development to partners to allow for more attention to its Web3 and crypto components.
Further, financial data submitted to the Australian Securities and Investments Commission, (ASIC), show that Immutable made $27 million in revenue last year. However, the company incurred expenses of $83 million. This caused the startup to lose $56 million.
Immutable raised its value of its crypto- and tokens holdings from $500 million to $558million. A spokesperson for the company stated that the firm has $280 million in cash on its balance sheet. This gives it more than four years’ worth of cash reserves at the current rate of spending.
More job cuts
Ferguson stated that the affected employees will be paid a redundancy payment of $102 per week, laptops and counseling. They will also have the right to keep more shares than the limit. Immutable will also provide healthcare to US workers.
The most recent development marks the Second time Immutable is cutting its workforce. The company laid off 6% its employees in July 2022, including members of its crypto-game, Gods Unchained.