Update (Nov. 26, 6:40 am UTC): This article has been updated to add comments from Trung Nguyen.
Sky Mavis, the developer behind Web3 game Axie Infinity and the Ronin blockchain, said it is laying off 21% of its workforce as part of a strategic realignment.
Sky Mavis co-founder and CEO Trung Nguyen announced the layoffs in an X post, describing the decision as a “shift in priorities” rather than a reflection of employee performance or the company’s financial stability.
“It is a shift in priorities aimed at aligning our resources with our long-term vision,” Nguyen wrote. He added that affected employees would receive severance packages and support in finding new opportunities.
With non-fungible tokens (NFTs) having lower volumes than Axie Infinity’s peak, Cointelegraph asked Nguyen if the layoffs resulted from the NFT downturn. However, he told Cointelegraph that the decision had nothing to do with the market dip:
“No, the decision to reduce the workforce is not tied to NFT market trends. It is a strategic step to streamline our team and position the company for strong growth heading into 2025.”
In a statement sent to Cointelegraph, Nguyen added that Sky Mavis is set to debut a brand-new game in the first quarter of 2025. The executive said the company would use the lessons and institutional knowledge it has gained over the past few years to develop the game.
“We will be happy to share a trailer with you as soon as it’s ready,” he added.
A new Axie Infinity game in the making
Nguyen emphasized that the layoffs were not due to financial concerns but were part of a strategy to position Sky Mavis for growth in 2025 and beyond:
“I want to be absolutely clear: this decision is not related to the company’s budget or financial health. Instead, it is a strategic move that allows for a sharper focus and positioning Sky Mavis for hypergrowth in 2025 and beyond.”
Nguyen said the freed-up resources will be used in several projects, including “a new Axie game.” He did not provide additional information regarding the new game.
Source: Trung Nguyen
In addition to a new game, Nguyen said the team would focus on the Ronin Wallet, the Mavis Marketplace, Web3 game publishing and expanding the Ronin Network. Nguyen said that the layoffs were done to give the firm better agility and to focus on its products.
Related: Bitcoin NFTs surpass Ronin in all-time sales
Axie Infinity tokens and NFTs are far from their peak
While Sky Mavis said its decision is unrelated to financial health, some of its blockchain-based assets have seen significant value declines.
Floor prices for Axie NFTs. Source: DappRadar
According to data tracker DappRadar, Axie Infinity NFTs called “Axies,” which had a floor price of above $700 in 2022, now have a floor price of around $0.33.
The Axie Infinity (AXS) token, which reached an all-time high of $164.90 in 2021, now trades for around $8.07. Another token, Smooth Love Potion (SLP), peaked at $0.39 in 2021 but has dropped to $0.0036.
Meanwhile, the Ronin blockchain’s native token, Ronin (RON), performed well in 2024, reaching an all-time high of $4.45 in March. It currently trades at $1.77.
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