Sky Mavis, the company behind the Web3 game Axie Infinity and the Ronin blockchain, has announced a workforce reduction. It has cut 21% of its employees as part of a broader strategic realignment.
CEO and co-founder Trung Nguyen broke the news on November 25 through an X post, emphasizing that the layoffs are not tied to financial instability but are instead aimed at refining the company’s long-term focus.
Nguyen clarified the move was driven by a need to reposition for growth and innovation in 2025 and beyond. “This decision is not related to the company’s budget or financial health,” Nguyen stated, highlighting that the layoffs were about realigning resources rather than reflecting poor employee performance.
Affected employees are set to receive severance packages and assistance with finding new opportunities.
Shifting Resources to Key Projects
The freed-up resources from the layoffs will reportedly be funneled into several initiatives, including the development of a new Axie Infinity game. While details about the game remain scarce, Nguyen mentioned that other core focuses include enhancing the Ronin Wallet, expanding the Ronin Network, and furthering Web3 game publishing.
Additionally, the Mavis Marketplace will see increased attention as Sky Mavis aims to strengthen its ecosystem. According to Nguyen, the restructuring is intended to enhance the company’s agility in delivering its goals.
Despite Nguyen’s assurance of the company’s financial health, Sky Mavis has faced challenges tied to its blockchain-based assets. Data from DappRadar shows that the value of Axie Infinity NFTs has plummeted.
These NFTs, which once had a floor price of over $700 in 2022, now trade for as little as $0.33. Similarly, the Axie Infinity token, which peaked at $164.90 in 2021, now trades at around $8.07.
Navigating a Challenging Landscape
Though Sky Mavis is repositioning itself for future growth, its flagship assets have struggled to maintain their previous momentum. Smooth Love Potion (SLP) has seen a steep decline from a 2021 high of $0.39 to just $0.0036. However, the Ronin blockchain token has demonstrated resilience, reaching an all-time high of $4.45 earlier this year, though it currently trades at $1.77.
As the company transitions, it remains to be seen whether Sky Mavis’s strategic realignment will reignite the popularity of its ecosystem or if its struggles with declining token values will overshadow its ambitions for a new era of Web3 gaming.
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