Illuvium cuts 40% of staff to speed up game development

Illuvium Labs, a developer of blockchain-based games, recently reduced its workforce by 40% in an effort to accelerate the development of its game titles.

According to CEO Keiran Warwick, the company made the difficult decision to cut staff after a period of rapid growth.

The layoffs impacted roughly 45 employees, bringing the company's headcount down to 65.

Warwick emphasised that the cuts primarily affected operational roles such as marketing, security, and quality assurance.

Developer positions were not affected, and the company intends to transition some quality assurance responsibilities to its community.

Warwick explained that the move is part of a broader effort to streamline operations and return to a more agile, efficient structure.

"When we were at our best was when we were super lean," he noted.

Illuvium (CRYPTO:ILV) is currently focused on developing three core games on the Ethereum (CRYPTO:ETH) blockchain: Illuvium Overworld, Illuvium Arena, and Illuvium Zero.

The company is also exploring the integration of AI-driven characters, having recently announced a partnership with Virtuals.

Warwick believes the leaner structure will help the company manage its finances more effectively.

The staff reductions are expected to decrease the firm’s monthly burn rate from roughly $950,000 to approximately $500,000.

Some employees have also agreed to accept reduced salaries or compensation in ILV tokens, extending the company's financial runway to around 24 months.

Warwick does not anticipate the layoffs will negatively impact game development progress.

The company remains committed to releasing new features and improvements for its core games, including a relaunch of Illuvium Arena.

At the time of reporting, the Illuvium (ILV) price was $18.92.