Australian crypto gaming start-up quietly axes 11 per cent of its staff despite raising hundreds of millions from investors last year
- Crypto gaming platform Immutable X laying off staff
- Start-up raised $280million in funding last year
- Immutable says it needs to conserve its cash reserves
A crypto gaming start-up rated as the third most valuable privately owned tech company in Australia after raising nearly $300million in funding last year quietly announced it is letting 11 per cent of its staff go.
Sydney-based Immutable X was a darling of the start-up world after raising $280million of venture capital last year, which on top of other successful rounds saw the company valued at $3.5billion last March.
The success propelled its young founders, Alex Connolly and brothers Robbie and James Ferguson, all aged in their 20s, into the ranks of multi- millionaires with Connolly being worth an estimated $57million and the Fergusons around $1billion.
However, in an internal message to staff Immutable X CEO James Ferguson announced the layoffs which he blamed on the need to preserve cash and concentrate on the company’s most important areas.
‘An unfortunate consequence of these decisions is that we will be reducing the size of our team by approximately 11 per cent,’ James wrote, according to The Age.
Crypto gaming start-up Immutable is laying off 11 per cent of their staff despite being valued at $3.5billion last March
‘This is difficult news, and I am sorry to all Immutables impacted by these changes. As CEO, I am deeply aware that these role eliminations will directly impact the lives of many, and I take full ownership for these actions.’
The start-up, which began in 2018, had previously offered huge salaries to expand its workforce to over 300 people in 16 offices around the world.
Immutable X creates games on the blockchain platform Ethereum and allows players to own and trade in-game items using that cryptocurrency.
In today’s announcement Mr Ferguson said the company would hand over developing traditional aspects of its games to partners to concentrate on the crypto and Web3, otherwise known as ‘play-to-earn’ games, components of its business.
Immutable X counts Disney and Marvel among its clients.
Brothers James (pictured left) and Robbie Ferguson founded Immutable with Alex Connolly (pictured right)
Financial uncertainty has created a rocky climate for both start-ups and cryptocurrency.
The high profile collapses of the crypto-based Terra ecosystem and the FTX exchange has seen investors become gun-shy, however the two largest currencies Ethereum and Bitcoin have shown signs of rallying.
Immutable has been contacted for comment.