NFT gaming startup Immutable, has cut its staffing for a second time in six months, shedding another 11% of its team.
Another 32 roles will go, on top of 20 positions cut in July last year, less than a year after the Sydney startup burst to prominence as fast-growing tech unicorn.
In March last year Immutable raised $280 million Series C led by Singapore’s sovereign fund Temasek, with support from Hong Kong-based gaming software firm Animoca Brands, as well as Chinese video gaming giant Tencent. The round valued the business at $3.5 billion.
CEO James Ferguson wrote to the startup’s “Immutables” this morning to outline the changes and “role eliminations” in the business.
They include the outsourcing of development of some of its web2 gaming products, including Guild of Guardians and Gods Unchained, to focus the business on web3 aspects such as NFTs and tokenomics.
He said they are cutting investment in areas not directly aligned with the company’s strategy to “double down on others”.
The platform and studio product and engineering teams, and platform and studio marketing functions are being rationalised, cutting the company’s workforce by around 11%.
“This is difficult news, and I am sorry to all Immutables impacted by these changes,” he said, adding that he takes “full ownership for these actions”.
Staff were given 30 minutes warning before being called into meetings, with systems access locked down in the meantime.
“I believe this is the only prudent choice in light of our responsibility to protect sensitive company and customer information, and to ensure access to our systems is secure,” Ferguson wrote.
The company is offering an average of 10 weeks pay to staff, waived vesting conditions on its employee share program, the chance to keep their laptops, 3 months of unlimited Employee Assistance Program, and immigration support for those on visas connected to their work.
“It is my belief though that these tough choices will strengthen Immutable’s long-term position by protecting roadmap delivery and ensuring our category leadership,” Ferguson said.
“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. We have ambitious goals; nothing has changed in our commitment to achieving them – and we see 2023 as a pivotal year to do just that.”