Axie Infinity Developer Sky Mavis to Lay Off 1/5th Staff

Sky Mavis, the developer of blockchain game Axie Infinity, is cutting down more than 1/5th of its staff.

Background

• The layoffs are expected to affect roughly 50 employees
• Their team comprises a total of 250 members across the globe
• The foundational stones for Sky Mavis were laid in 2018
• It gained traction when its play-to-earn game, Axie Infinity, started gaining mass appeal during the pandemic

Why should you pay attention?

• Company executives highlighted that the layoff reflects a “shift in priorities”
• The company’s main focus going forward revolves around expanding the Ronin Network and wallet service, Mavis Marketplace, Axie Infinity, and developing a new Axie Infinity game
• Despite the layoffs, the company forecasts growth in 2025

Who said what?

• CEO and Co-Founder Trung Nguyen clarified,

“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”

• He added,

“I remain steadfast in our commitment to Sky Mavis’ mission: To bring economic freedom to everyone, starting with gamers”

Zooming out

• As crypto-friendly policies gain traction, the Sky Mavis team anticipates “a wave of innovation and adoption” for utility-driven Web3 projects
• That, ultimately, would help usher in a monumental shift
• Sky Mavis is not the only firm laying off staff amid the bull run
• Companies including Paxos and dYdX have made similar calls this year