- Sky Mavis reduces workforce by 21%, citing a strategic focus on long-term growth and not financial instability.
- Resources will be redirected to key projects, including a new Axie Infinity game and Ronin Network developments.
- Axie Infinity assets, including NFTs and tokens, remain far below their all-time highs, reflecting challenges in the blockchain gaming space.
Sky Mavis, the developer of Axie Infinity and the Ronin blockchain, has announced a significant restructuring, with 21% of its staff being laid off. The decision, described as a “shift in priorities,” was shared by co-founder and CEO Trung Nguyen in an X post. Nguyen clarified that the layoffs were not due to financial struggles but part of a broader strategy to align resources with the company’s long-term vision.
Nguyen assured that affected employees would receive severance packages and assistance in finding new employment opportunities. He emphasized that the reallocation of resources would better position Sky Mavis for “hypergrowth” in 2025 and beyond.
“We are reallocating resources to ensure sharper focus on high-priority projects,” Nguyen said, highlighting plans to develop a new Axie Infinity game, enhance the Ronin Wallet, expand the Mavis Marketplace, and support Web3 game publishing.
Decline in Axie Infinity Asset Values
Despite assurances of financial stability, Axie Infinity-related assets have experienced significant value declines. According to DappRadar, the floor price of Axie NFTs has dropped from over $700 in 2022 to roughly $0.33 today. Similarly, the Axie Infinity (AXS) token, which once peaked at $164.90, now trades near $8.07. Smooth Love Potion (SLP), another associated token, has seen a sharp decline, from $0.39 at its peak to $0.0036.
In contrast, Ronin’s native token (RON) has performed relatively well in 2024, with its price reaching $4.45 in March before settling at $1.77.
Future Plans and Industry Challenges
The restructuring aims to provide Sky Mavis with greater agility and enable the company to focus on its products amid challenges in the blockchain gaming industry. The company has not released further details about the new Axie Infinity game but stated that the project aligns with its goal of delivering innovative experiences in Web3 gaming.
Sky Mavis’ decision reflects a broader trend in the blockchain space, where companies are seeking to recalibrate strategies and adapt to shifting market conditions. While Axie Infinity’s peak days may seem far removed, the company’s latest moves indicate a commitment to long-term innovation and sustainability.
