Sky Mavis, the blockchain startup known for Axie Infinity, has announced it will reduce its workforce by 21%.

This decision will affect around 50 employees, given their global team numbers around 250.

The layoffs were announced on Saturday.

According to Nguyen Thanh Trung, the company’s co-founder, this move is part of a strategy to refocus on core products and long-term strategy.

Trung emphasized that financial constraints did not prompt the decision. Affected employees will receive severance packages and job placement support.

Sky Mavis was founded in 2018 and became notable for Axie Infinity, which introduced the play-to-earn model during the pandemic.

However, they faced setbacks such as the decline in the play-to-earn trend and a major hack in 2022, resulting in a US$600 million loss. Following these events, Sky Mavis shifted to a free-to-play model.

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