By Michael Scott
Immutable chief executive James Ferguson announced 11% headcount reduction blaming the move on the need to optimize operations efficiency and utilization of cash reserves.
The letter penned by the Australian gaming firm Immutable informed the employees of the decision to layoff 11% of its workforce.
Immutable Layoffs Inevitable to Prolong Cash Reserves
News of axing 11% of the staff arose in a Sydney Morning Herald report. The report echoed the chief executive letter alleging that layoffs were inevitable for the firm to optimize the period its cash reserves would last. Citing Ferguson’s confession, the report indicated that the layoffs would allow Immutable to reallocate resources to the vital projects.
Ferguson admitted full ownership for the layoff decision. He regretted that the survival of the Immutable made layoff of employees inevitable. Nevertheless, the gaming executive apologized to the Immutables affected by the decision to reduce the headcount.
Comprehensive Severance Pay for Layoff Victims
Ferguson reassured the affected employees would receive 10 weeks severance pay. In addition, the company would allow them to retain laptops. Immutable would replicate the approach adopted by other firms downsizing their workforces.
The firm would offer counseling and coaching initiatives in addition to enrolling them for the outplacement services. The gaming firm would extend healthcare to the US staff.
Immutable Battling Cash Reserves Shortage
The report published in the Sydney Morning Herald indicated that Immutable earnings approximated $27 million against annual expenses of $83 million. The information derived from the filings to the Australian Securities and Investments Commission (ASIC) illustrated a deficit of $56 million.
A substantial amount of the amount estimating $45 million was spent in settling expenditure accruing from employees-related bills, consultants pay and compensating freelancers.
The Sydney Morning Herald report cited the firm’s filing to ASIC stating that the gaming firm only had $280 million cash within its reserves. An estimation of the resources by one of its anonymous employees indicated the reserves captured on the balance sheet would give it four years if it replicated the current spending rate.
Meanwhile, Immutable decision to layoff staff coincides with Polygon (MATIC) sacking 20% of its workforce on February 21.
Editorial credit: Ira Lichi / Shutterstock.com
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