Sky Mavis, the developer behind the popular blockchain-based game Axie Infinity, has announced it will lay off approximately 50 employees roughly 21% of its workforce. The company stated that the layoffs are part of a broader effort to streamline operations and sharpen its focus on key products, including the Ronin wallet and the Ronin Network.
Co-founder Nguyen Thanh Trung took to social media to reassure the public that the decision was not due to financial difficulties. In an X post, Trung explained that the layoffs were a “strategic move” aimed at positioning Sky Mavis for “hypergrowth in 2025 and beyond.” He emphasized that the layoffs were a difficult but necessary step to better align the company’s resources with its core goals and priorities.
“The decision to part ways with talented team members was not made lightly and does not reflect their contributions to Sky Mavis. […] In order to better focus on these products and have the agility needed to open Ronin in Q1, we have made the tough decision to let go of 21% of our workforce,” Trung said.
Trung also made it clear that Sky Mavis will not be diversifying its product offerings, stating the company would “double down” on what it does best. This means the focus will remain on the Ronin wallet and expanding the Ronin Network to attract more developers and builders to the ecosystem.
The announcement came on the heels of a 3.78% drop in the price of the Axie Infinity token (AXS), reflecting the market’s reaction to the news.
Shifting Focus and Recovering from Past Setbacks
Sky Mavis, which was founded in 2018, operates on a play-to-earn model, where players can purchase and battle creatures, earning non-fungible tokens (NFTs) and in-game currency in the process. However, the company has faced significant challenges. In 2022, a hacking group linked to North Korea executed a sophisticated attack on Sky Mavis, exploiting vulnerabilities in its Ronin Network and leading to a staggering $600 million loss. This breach prompted the company to pivot its business model, shifting from a play-to-earn model to a free-to-play model in a bid to recover from the attack and rebuild trust within the community.
Despite these setbacks, Sky Mavis remains committed to its vision of driving the future of blockchain gaming and decentralized finance. With the Ronin wallet and network now a central focus, Sky Mavis hopes to foster more growth and innovation, particularly through partnerships with other developers and projects within the broader Web3 ecosystem.
As the company refines its strategy and adapts to the changing market landscape, the upcoming launch of Ronin in Q1 2025 is seen as a critical step in the next phase of its recovery and expansion.
