Axie Infinity Maker Sky Mavis Lays Off 21% of Workforce

Sky Mavis, the creator of the popular blockchain game Axie Infinity, is laying off 21% of its workforce as part of a strategic shift aimed at driving growth in the coming years.

The move will affect approximately 50 employees out of the company’s 250 global team members, according to a report by TechInAsia.

Strategic Shift, Not Financial Trouble

CEO and co-founder Trung Nguyen addressed the layoffs in a statement on X, emphasizing that the decision is not tied to financial issues:

“This decision is not related to the company’s budget or financial health. It is a strategic move that allows for a sharper focus and positions Sky Mavis for hypergrowth in 2025 and beyond.”

Nguyen explained that the layoffs reflect a “shift in priorities”, with the company focusing on:

• Expanding the Ronin Network and its wallet service.
• Mavis Marketplace, Sky Mavis’ NFT marketplace.
• Enhancements to Axie Infinity and the development of a new game in the Axie franchise.

The Rise and Challenges of Sky Mavis

Sky Mavis, founded in 2018, rose to prominence during the COVID-19 pandemic as its blockchain-based play-to-earn game, Axie Infinity, gained massive popularity.

At its peak:

• The game had 2.7 million daily active users.
• Weekly trading volume for in-game NFTs reached $214 million.

However, the company faced significant challenges, including the 2022 hack of the Ronin Ethereum sidechain, which resulted in a loss of around $600 million. The U.S. government attributed the hack to the North Korea-backed Lazarus Group.

A Vision for the Future

Nguyen remains optimistic about the future of Web3 and blockchain-based gaming:

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

Despite the layoffs, the company is positioning itself for growth, leveraging its established presence in the blockchain gaming ecosystem to expand its services and offerings.

What’s Next for Sky Mavis?

As Sky Mavis sharpens its focus, key initiatives include:

• Bolstering the Ronin Network, which underpins Axie Infinity and related projects.
• Driving adoption of Mavis Marketplace for NFT trading.
• Introducing new Axie Infinity experiences to reignite user engagement.

While the company faces challenges, its strategic pivot suggests a renewed effort to innovate and lead in the Web3 gaming space.