Sky Mavis Lays Off 21% of Workforce to Focus on Strategic Growth Amid Regulatory Changes

Sky Mavis, the company behind the popular NFT game Axie Infinity, has made a significant decision recently. They’ve laid off a portion of their workforce.

Co-founder Nguyen Thanh Trung announced on Twitter that the company has let go of 21% of its employees. He emphasized that this tough choice wasn’t about financial troubles or budget cuts.

Instead, it’s a strategic move. Trung explained that this shift allows Sky Mavis to focus more sharply on its long-term goals. They’re gearing up for what they call “hypergrowth” in 2025 and beyond.

The firm is realigning its priorities. They’re concentrating on several key areas: the Ronin wallet, the Mavis marketplace, Axie Infinity, a new game related to Axie, Web3 game publishing, and expanding the Ronin Network.

Axie Infinity is a play-to-earn game featuring NFT collectibles, like artwork and videos. It became hugely popular in early 2021. The Ronin Network is an Ethereum-based sidechain designed for gaming. According to Trung, it’s now the third most used crypto network. The Ronin wallet has been downloaded 10 million times.

However, the bridge connecting the Ronin Network to Ethereum has faced several hacking incidents. The latest hack happened in early August, resulting in a loss of about $12 million. Fortunately, a white hat hacker who exploited the protocol returned most of the stolen funds shortly after.

Trung also hinted at changing regulations, likely in response to Donald Trump’s recent victory in the U.S. presidential elections. He expressed optimism about the future. As crypto-friendly policies gain traction, he anticipates a wave of innovation and adoption for utility-driven Web3 projects.

During his campaign, Trump promised to ease restrictions on digital assets and blockchain technology companies in the U.S. Trung’s comments suggest that these potential changes have influenced the company’s strategy moving forward.