The reason for the staff cuts, according to the CEO, is to extend the longevity of the company’s cash reserves.
Immutable, an Australian crypto gaming company, plans to lay off 11% of its workforce, as reported by The Sydney Morning Herald. The company’s CEO and co-founder, James Ferguson, explained in a letter to employees that the staff cuts are necessary to maximize the longevity of the firm’s cash reserves and direct resources towards the most crucial projects.
Ferguson accepted full responsibility for the decision and expressed regret to those affected by the cuts. The employees affected by the layoff will receive an average of 10 weeks of redundancy pay, laptops, counseling, coaching, and outplacement services, while healthcare benefits will be extended to staff in the US.
The SMH report revealed that Immutable earned $27 million but incurred $83 million in expenses in the previous financial year, according to financial disclosures to the Australian Securities and Investments Commission. However, an Immutable spokesperson stated that the firm has $280 million in cash on its balance sheet, allowing it more than four years of cash reserves at the current rate of spending.
