Blockchain Video Game Firm Mythical Games Lays Off 10% Of Workforce

Web3 game developer Mythical Games, which recently raised more than $270 million in venture capital has laid off its headcount by 10% as startups attempt to navigate a tough business environment and rush to rein in costs.

Nate Nesbitt, a spokesperson for Mythical Games, talked about the development on Friday and said just like all firms, Mythical has been affected by the economic downturn and has had to reassess and restructure some areas of its business accordingly. The executive then said: “Unfortunately, as a result, we had to make the painful decision to let some of the members of our team go."

Mythical had about 320 employees, according to data from a LinkedIn profile. The Web3 gaming unicorn has shifted away from traditional corporate structures in recent months, favoring a more decentralized approach. In October, the firm established the Mythical Foundation as part of efforts to decentralize the gaming ecosystem.

The layoffs at a firm that was once valued at $1.25 billion in its latest valuation signal a widespread low interest of the so-called play-to-earn video games, which promise players the opportunity to purchase and sell in-game goods for real-life cash using nonfungible and blockchain tokens.

The job cut announcement comes just one day after three top executives of the Web3 game developer announced their departures from the company on Wednesday.

Co-founder Rudy Koch, Senior Vice President Chris Ko, and Chief Operating Officer and head of games Matt Nutt announced their departures on LinkedIn, sharing details about new upcoming venture opportunities.

Mythical Games is the latest affected tech firm. High-flying startups with record valuations, ambitious expansion plans, and huge hiring goals are currently announcing hiring slowdowns, freezes, and in some cases massive layoffs.

Investors and founders are preparing to navigate what looks like an economic downturn — and perhaps even a recession.

Big tech firms including Meta, Salesforce, Coinbase, and Netflix, among others, have recently announced layoffs in the midst of cost-cutting pressure, rising inflation, bear market, and rising interest rates.