Sky Mavis, the company behind the popular Web3 game Axie Infinity and the Ronin blockchain, has announced a significant restructuring effort that will see 21% of its workforce laid off. The decision, as explained by co-founder and CEO Trung Nguyen, is part of a strategic realignment to synchronize resources with the company’s long-term vision, rather than an indication of reduced employee performance or financial difficulties. Affected staff will receive severance packages along with assistance in securing new employment opportunities.
The layoffs are positioned as a tactical measure to enhance the company’s focus on future growth, particularly looking toward 2025 and beyond. Nguyen clarified that the decision was not driven by immediate budget constraints; rather, it reflects a commitment to sharpening operational focus and positioning Sky Mavis for potential hypergrowth. The reallocated resources from the layoffs are expected to support several ongoing initiatives, including the development of a new Axie Infinity game, although details about this project remain scarce.
In addition to the game development, the company plans to concentrate efforts on improving the Ronin Wallet, the Mavis Marketplace, Web3 game publishing, and the expansion of the Ronin Network. By streamlining their workforce, Sky Mavis aims to enhance agility and better direct efforts towards these key areas.
Despite the company emphasizing that the layoffs are not linked to financial instability, the valuation of its digital assets tells a different story. The prices of Axie Infinity non-fungible tokens (NFTs), once valued at over $700, have plummeted to approximately $0.33. The Axie Infinity token itself has seen a drastic decline from a peak of $164.90 in 2021, currently trading around $8.07, while the Smooth Love Potion has witnessed a similar drop. Although the Ronin token experienced a notable peak earlier in 2024, it is currently valued at $1.77, demonstrating the volatility and fluctuating interest in the blockchain gaming sector.
