Temasek-backed Australian NFT firm cuts one-third staff, adds AI

Australian blockchain gaming company Immutable has cut its workforce by one-third over the past nine months, reducing its headcount from 224 in 2023 to around 150.

The company confirmed that AI now supports roles in commercial, engineering, product, and marketing teams, particularly in design and content creation.

This follows a broader trend seen in tech companies like Canva and Microsoft, where AI is replacing certain staff functions.

Immutable, valued at US$3.5 billion in 2022, operates the ImmutableX platform and develops games like Gods Unchained and Guild of Guardians.

Despite a US$50 million loss in 2023 due to higher employee costs and crypto asset declines, it reported a 55% revenue increase to US$67 million in 2024.

Backed by investors like Temasek and Tencent, the company expects to reach cash flow break-even by the end of 2025.

🔗 Source: The Australian Financial Review

🧠 Food for thought

1️⃣ Creative and content roles face increasing AI displacement across tech

Immutable’s elimination of design and content creation roles reflects a broader industry pattern affecting specialized creative positions.

The company has explicitly replaced its in-game art and content creation functions, previously costing over $1 million annually, with AI tools, showing how generative AI is specifically targeting creative production roles 1.

This mirrors Canva’s recent actions, where the company laid off its entire technical writing team shortly after encouraging employees to adopt generative AI tools for documentation 2.

Microsoft similarly attributed recent job cuts to AI systems now handling coding tasks previously done by human developers, demonstrating that this trend extends beyond visual content creation 3.

Industry research from McKinsey indicates this pattern will accelerate, with up to 70% of current employee tasks potentially automatable using existing technology. This suggests creative professionals need to adapt their skills to work alongside these tools rather than compete directly with them 4.

2️⃣ Post-funding boom retrenchment drives AI adoption in tech unicorns

Immutable’s staff reductions highlight a common pattern among tech unicorns: aggressive hiring during funding booms followed by cost-cutting through AI implementation when financial reality hits.