Australian crypto gaming company Immutable is cutting 11% of its workforce, according to a letter to employees from the CEO shared with CoinDesk by the platform.
The news was first reported by The Sydney Morning Herald (SMH).
Chief Executive and co-founder James Ferguson announced the job cuts in the note blaming the layoffs on a need to maximize how long its cash reserves will last and put its resources towards the most important projects.
"I take full ownership for these actions,” Ferguson wrote. He added, "I am sorry to all Immutables impacted by these changes." Affected staff would be offered an average of 10 weeks' redundancy pay, laptops, counseling, coaching and outplacement services, the report said. Health care would be extended to the staff in the U.S.
The SMH report also added that financial submissions to the Australian Securities and Investments Commission show that Immutable earned $27 million, but had $83 million of expenses in the past financial year.
An Immutable spokesperson told The Sydney Morning Herald that the company had $280 million in cash on its balance sheet, giving it more than four years of cash reserves at its current rate of spending.
UPDATE (Feb 22 10:10 UTC): Adds confirmation and the CEO letter.
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