Axie Infinity Creator Sky Mavis Lays Off 50 Employees Despite CEO Insisting It's Not Due to Financial Challenges

Sky Mavis, the company behind the once-viral non-fungible token (NFT) game Axie Infinity, is laying off over 20% of its workforce in a decision the CEO insists wasn't due to financial challenges.

Sky Mavis, the company behind the once-viral non-fungible token (NFT) game Axie Infinity, is laying off over 20% of its workforce in a decision the CEO insists wasn’t due to financial challenges.

CEO and co-founder Nguyen Thanh Trung announced the layoffs on social media, saying that a shift in the company’s focus necessitated the decision.

“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,” he stated. With an estimated workforce of around 250, the layoffs will affect 50 employees.

Founded in 2018, Sky Mavis took off with the launch of Axie Infinity, a play-to-earn NFT game that was wildly popular, especially in Southeast Asia. By 2021, when Axie peaked, its daily active users averaged over 2.5 million, with the Philippines accounting for over 40%. This massive fanbase enabled the company to generate $1.3 billion in revenue in 2021. It also attracted investors in their droves, and in a fundraising round in October that year, it was valued at $3 billion.

But in March 2022, hackers drained over $600 million from the Ronin Network, Axie’s Ethereum sidechain. This was only the beginning of the company’s downfall. However, the biggest headwind has been the drastic downfall of NFTs over the past two years. Axies, the ecosystem’s native NFT tokens, which once had a floor price of $700, now trade for cents, shedding 99.9% of their value.

Still, Nguyen—who was accused of frontrunning the market in the aftermath of the $600 million hack—insists that the layoffs had nothing to do with the financial constraints.

“I want to be absolutely clear: this decision is not related to the company’s budget or financial health. Instead, it is a strategic move that allows for a sharper focus and positioning Sky Mavis for hypergrowth in 2025 and beyond,” he stated.

In a statement to one media outlet, he doubled down on this assertion, noting that “the decision to reduce the workforce is not tied to NFT market trends. It is a strategic step to streamline our team and position the company for strong growth heading into 2025.”

He added that the company would pivot away from making products with mass appeal and instead focus on catering to its core fans. This includes doubling down on the Ronin Wallet, the Mavis marketplace, and Web3 game publishing. Nguyen also revealed that Sky Mavis would release a new game early next year.