- Sky Mavis is restructuring its team to focus on its most important gaming and blockchain projects.
- The layoffs affect 50 employees and are part of a long-term plan to strengthen the company’s mechanism.
- The corporation is prioritizing Ronin Wallet, Axie Infinity, and new projects for foreseeable growth in blockchain gaming.
Sky Mavis, the creator of Axie Infinity, has announced plans to decrease its personnel by 21%, impacting 50 employees. This decision aligns with a new focus on streamlining operations and preparing the business for forthcoming growth opportunities.
Shift Towards Key Projects
CEO Nguyen Thanh Trung explained that the firings were not related to financial issues but instead were part of a strategic plan to prioritize essential projects. The startup will focus on developing the Ronin Wallet, Mavis Marketplace, and Axie Infinity while expanding its Ronin Network infrastructure.
Additionally, the organization is developing a new Axie Infinity game to diversify its offerings. The restructuring is designed to enhance its position in the gaming community as it adapts to changing shopping conditions. Affected employees will receive severance support along with help to find new roles. This move symbolizes a clear intention to concentrate on projects that can bring sustained growth while also building long-term value for the company.
Facing Challenges in Blockchain Gaming
The challenges it faced gained prominence in 2018 when Axie Infinity introduced the play-to-earn principle that helped redefine blockchain gaming. However, interest in this model has declined over time due to market shifts.
The company faced a major hurdle in 2022 after a $600 million hack targeted its Ronin Network. Despite this setback, Sky Mavis raised $150 million, with Binance leading the recovery effort. Transitioning the company to a free-to-play model also became a priority to attract more users and adapt to evolving trends. However, the value of Axie Infinity NFTs and tokens has decreased sharply. NFTs that once held values above $700 now have floor prices of $0.33.
Broader Industry Layoffs
Sky Mavis is not the only blockchain company cutting jobs. Kraken recently let go of 30 percent of its workforce. Similarly, DYDX and Consensys reduced staff by 25 percent and 20 percent, respectively.
Other companies like Polygon, Paxos, and Moonpay have also downsized as market conditions shift rapidly. This wave of staff resignations highlights the current challenges facing the cryptocurrency and blockchain industries. Will these efforts enable Sky Mavis to recover its standing and prepare for a stronger future in blockchain gaming?
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