The Sydney Morning Herald reported that Australia’s crypto gaming firm, Immutable, will lay off 11% of its staff on Feb. 22.

Immutable’s CEO, James Ferguson, reportedly blamed the decision on the company’s need to maximize its reserves and prioritize essential projects.

Impacted workers would be offered an average of 10 weeks’ redundancy pay, the ability to keep more shares in the company, laptops, counseling, coaching, and outplacement services. The report added that impacted staff in the United States would have their company-provided healthcare extended.

Immutable previously laid off multiple employees in 2022 due to the challenging market conditions at the time.

Immutable lost $56 million in the past financial year

Over the past financial year, the company reportedly incurred around $56 million in losses as its expenses outstripped earnings.

According to figures submitted to the Australian Securities and Investments Commission, the firm earned $27 million, while its expenses were around $83 million — $45 million of these expenses were used to cater for employees, consultants and freelancers.

However, an Immutable spokesperson told The Sydney Morning Herald that the company had $280 million cash and was a long-term holder of its IMX token.

Meanwhile, the IMX tanked by over 8% to $0.94206 at the time of writing, according to CryptoSlate’s data.

Immutable’s announcement followed that of Polygon (MATIC), which sacked 20% of its staff on Feb. 21.

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