Sky Mavis, the blockchain gaming company known for its hit title Axie Infinity, announced it has reduced its workforce by 21% as part of a “strategic realignment.” The decision comes as the company sharpens its focus on key projects and prepares for the next phase of its growth.

In a statement, Sky Mavis emphasized that the layoffs are not tied to financial challenges but are aimed at increasing agility and prioritizing core initiatives.

The company outlined its areas of focus, which include: enhancing the Ronin Wallet and Waypoint; developing the Mavis marketplace; Expanding Axie Infinity with a new game; growing Web3 game publishing; and scaling the Ronin Network for broader adoption.

Sky Mavis highlighted the significant achievements of 2024, including the Ronin Wallet surpassing 10 million downloads and the Ronin Network becoming the third most-used blockchain with over 1.1 million daily active addresses.

The company also cited the broader crypto industry’s trajectory, with increasing adoption of Web3 technologies, as a driver for its decision to double down on utility-driven projects.

Sky Mavis stated that it is providing affected employees with robust severance packages and resources to support their transition.

The company acknowledged the impact of the layoffs on its workforce but reiterated its commitment to its mission: “To bring economic freedom to everyone, starting with gamers.”