- ImmutableX is cutting its staff to maximize how long its cash reserves will last and direct the funds to its most promising projects.
- ImmutableX CEO James Ferguson said that he takes full ownership of the layoffs.
- The company lost millions of dollars last year.
ImmutableX, one of the market’s most popular Web3 gaming platforms, is firing employees.
According to a report by The Sydney Morning Herald, the Australian company is cutting its staff by 11%. The affected employees will be notified on Wednesday.
The main reason for the job cuts is ImmutableX’s need to maximize how long its cash reserves will last and direct the funds to the most promising projects.
The affected employees will be offered ten weeks’ redundancy pay, the ability to keep more shares in the company than usually required, keep company laptops and other services like coaching and counseling.
ImmutableX CEO James Ferguson. Source: afr.com.
ImmutableX CEO James Ferguson said in a letter to employees that he takes full responsibility for the layoffs.
“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.”
Despite the layoffs, Ferguson said the company still believes in transforming the gaming industry.
“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.”
While it might be surprising to see ImmutableX cut jobs, the company’s last year’s finances can help explain this decision.
ImmutableX Lost Millions of Dollars
ImmutableX’s decision to cut jobs is unsurprising, given that the company lost millions of dollars in 2022.
According to The Sydney Morning Herald, financial documents filed with the Australian Securities and Investments Commission show that ImmutableX that the company earned $27 million but had $83 million of expenses, including around $45 million for employees, consultants, and freelancers.
This represents a loss of $56 million in the past year. However, these figures do not necessarily represent ImmutableX’s actual financial situation, especially since the company has marked the value of its crypto holdings, including its native token IMX, to $558 million.
On top of that, an ImmutableX spokesperson told The Sydney Morning Herald that the company has $280 million in cash on its balance sheet, which is enough for around for years based on the firm’s current spending rate.
ImmutableX’s native token, IMX, responded negatively to the news. IMX is trading at $0.963, down around 5% in the last 24 hours, according to data from CoinGecko.
On the Flipside
- ImmutableX can sell some crypto holdings, including its native token IMX, to raise cash.
Why You Should Care
ImmutableX is one of the leading Web3 gaming platforms in the market. While it’s always sad to see employees let go, it’s good to know that the company is taking measures to survive the bear market.
Learn more about ImmutableX:
ImmutableX Unveils Immutable Passport, Improves Onboarding for Web3 Games