Immutable layoff one-third of its workforce

Australian blockchain gaming company Immutable has laid off about one-third of its workforce over the past nine months, reducing its employee count from 224 in 2023 to around 150.

This layoff is part of the company's strategy to streamline operations and adapt to the changing Web3 gaming landscape.

In response to financial challenges, including a $50 million loss in 2023 due to increased employee costs and a decline in crypto assets,

Immutable has turned to artificial intelligence (AI) to support various roles. The company now utilizes AI, particularly in design and content creation, to enhance efficiency and reduce costs.

Despite these setbacks, Immutable reported a 55% revenue growth in 2024, reaching $67 million, and anticipates achieving cash flow breakeven by the end of 2025 .

The company continues to invest in AI technologies to support its operations and is involved in major upcoming Web3 gaming projects, such as Star Atlas and Ubisoft’s Might & Magic: Fates.

The broader Web3 gaming industry is experiencing a downturn, with a decline in funding and several projects shutting down.

However, Immutable maintains a financial runway of at least 4 years and holds substantial assets, positioning it to navigate the current market challenges.

For crypto investors, it's noteworthy that Immutable's native token, IMX, has seen a decline, trading at $0.65, down nearly 75% year-to-date.

IMX has a market cap of $1.19 billion. This makes IMX the world's 67^th most valuable crypto by market cap.