Axie Infinity game developer Sky Mavis lays off 21% of workforce

Axie Infinity maker Sky Mavis is laying off 21% of its workforce amid the company's statement that it's eyeing growth in the coming year.

According to a TechInAsia report, the layoffs are expected to affect roughly 50 employees out of about 250 global team members.

“I want to be absolutely clear: this decision is not related to the company’s budget or financial health,” CEO and co-founder Trung Nguyen wrote in an X post last Saturday. “It is a strategic move that allows for a sharper focus and positioning Sky Mavis for hypergrowth in 2025 and beyond.”

Nguyen wrote that the layoff reflects a “shift in priorities” as he listed the company’s main focus going forward, which includes expanding the Ronin Network and wallet service, Mavis Marketplace, Axie Infinity and developing a new Axie Infinity game.

Sky Mavis was founded in 2018 and rose to prominence as its blockchain play-to-earn game, Axie Infinity, became hugely popular during the COVID-19 pandemic. At its height, it had roughly 2.7 million daily active users and $214 million in weekly trading volume for in-game NFTs.

However, the company’s Ronin Ethereum sidechain suffered a major hack in 2022, resulting in a loss of around $600 million, for which the U.S. government accused the North Korea-backed hacker group, Lazarus.

“As crypto-friendly policies gain traction, we anticipate a wave of innovation and adoption for utility-driven Web3 projects,” Nguyen said. “I remain steadfast in our commitment to Sky Mavis’ mission: ‘To bring economic freedom to everyone, starting with gamers.’”