Illuvium Labs, a blockchain-based gaming company, has reduced its workforce by 40% to accelerate game development. CEO Kieran Warwick described the decision as a “somber moment,” marking a significant restructuring as the firm adjusts to the ongoing bear market. The company, which previously peaked at 200 employees, now operates with 65 staff members, down from 110.
Warwick emphasized that no developers were affected by the layoffs, as the cuts primarily targeted operational roles in marketing, operations, security, and quality assurance. Quality assurance tasks will be transitioned to the community.
Reflecting on the firm’s history, Warwick noted that Illuvium was most effective when it was a smaller team of 50 to 60 experts. The current downsizing aims to recapture that efficiency, with the goal to streamline operations and deliver projects more swiftly.
Illuvium is developing three blockchain games—Overworld, Illuvium Arena, and Illuvium Zero—on the Ethereum platform, though its project roadmap has not been updated in over a year. However, continuous updates and plans for Illuvium Overworld are underway, including transforming it into a massively multiplayer online game (MMO). The company has also partnered with AI agent protocol Virtuals to enhance in-game non-playable characters.
The staff reduction will significantly cut Illuvium’s monthly expenditures from approximately $950,000 to $500,000, with further reductions anticipated. Some personnel have accepted pay cuts or opted for compensation in the form of the ecosystem’s ILV tokens, extending the company’s financial runway to 24 months.
Warwick expressed confidence that these changes would not impede game development, asserting that the team is focused on optimizing their core games and introducing new features. They aim to relaunch Illuvium Arena and launch various integrations with eSports tournaments over the coming months.
