Axie Infinity creator Sky Mavis has announced the layoff of 50 employees, accounting for 21% of its workforce. This decision is part of the company’s broader strategy to streamline operations and focus on its core products.

Strategic Workforce Reduction

Sky Mavis, the developer behind the popular blockchain-based game Axie Infinity, is making significant changes to its team structure. Co-founder Nguyen Thanh Trung emphasized that the layoffs are not due to financial difficulties. Instead, he described the move as a strategic decision aimed at positioning the company for growth in the coming years.

“The decision to part ways with talented team members was not made lightly and does not reflect their contributions to Sky Mavis. […] In order to better focus on these products and have the agility needed to open Ronin in Q1, we have made the tough decision to let go of 21% of our workforce.” — Nguyen Thanh Trung

Focus on Core Products

Trung also noted that Sky Mavis will narrow its focus, concentrating on the Ronin wallet and expanding the Ronin Network. This move is intended to enhance the company’s core offerings and provide better support for developers and builders within the ecosystem.

Market Impact

Following the announcement, the price of the Axie Infinity token (AXS) saw a decline of 3.78%. This reflects the market’s reaction to the company’s restructuring efforts.

Background and Future Plans

Founded in 2018, Sky Mavis operates on a play-to-earn model, where players purchase monsters and earn non-fungible tokens (NFTs) and in-game currency. In 2022, the company faced a significant setback when North Korea-affiliated hackers executed a social engineering attack, resulting in a $600 million loss. In response, Sky Mavis shifted to a free-to-play model.

Despite these challenges, Sky Mavis remains committed to refining its products and supporting its community. The company’s focus on the Ronin wallet and network expansion demonstrates a strategic approach to maintaining its position in the crypto and blockchain gaming industry.

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