Sky Mavis cuts workforce by 21% amid strategic shift

Sky Mavis, the developer behind Axie Infinity (CRYPTO:AXS), announced a 21% reduction in its workforce, affecting 50 of its 250 employees. 

The company stated that this decision is a strategic move to realign its priorities and position itself for growth, rather than a reaction to financial difficulties.  

“This decision is not related to the company’s budget or financial situation. This is a strategic move to allow for clearer focus and position Sky Mavis for growth in 2025 and beyond,” Sky Mavis co-founder Nguyen Thanh Trung stated on November 23. 

The restructuring aims to prioritise key products, including the Ronin (CRYPTO:RON) blockchain, the Ronin Wallet, and the Mavis Marketplace, while expanding the company's Web3 gaming portfolio.  

Employees affected by the reduction will receive severance packages and assistance in securing new employment opportunities.  

Founded in 2018, Sky Mavis gained recognition for its play-to-earn game Axie Infinity, which became widely popular during the pandemic.  

The company’s Ronin blockchain has reportedly achieved significant usage, with over 1.1 million daily active addresses and more than 10 million downloads of the Ronin Wallet.  

However, the company has faced notable challenges, including the decline of the play-to-earn trend and security breaches.  

A major incident in 2022 saw $615 million stolen in a hack of the Ronin bridge.  

Another breach this year resulted in $11 million being taken.  

According to Trung, recent crypto-friendly policies could bring innovation similar to when Axie Infinity launched in 2018.  

The company has since pivoted to broader Web3 projects, including introducing a free-to-play version of Axie Infinity.