Illuvium Labs Shrinks by 40% to Boost Game Development

Illuvium Labs, the blockchain-based gaming firm behind the popular Illuvium series, has announced a significant restructuring effort to streamline its operations and accelerate game development. In a move aimed at enhancing efficiency, the company has reduced its workforce by approximately 40% over the past two weeks, bringing its staff count down from 110 to 65.

Kieran Warwick, co-founder and CEO of Illuvium Labs, revealed the decision in an interview with Cointelegraph. He explained that the company had been gradually downsizing for the past two years, having peaked at 200 employees during the bull market. The latest round of layoffs primarily affected teams working in operational capacities, such as marketing, operations, security, and quality assurance (QA). Warwick noted that the QA work would now be handled by the community.

Warwick acknowledged the somber nature of the layoffs but expressed optimism about the firm's future. He stated that Illuvium Labs aims to return to its leaner, more efficient roots, where everyone was an expert, and the company could deliver projects quickly. Warwick attributed the firm's most productive period to its first year, when there was minimal management and long working hours.

Illuvium Labs is currently developing three blockchain games: Overworld, Illuvium Arena, and Illuvium Zero, all operating on the Ethereum blockchain. While the project's roadmap has not been updated in over a year, the firm has been actively releasing patches and announcing plans to evolve Illuvium Overworld into a massively multiplayer online game (MMO). Additionally, Illuvium Labs has partnered with AI agent protocol Virtuals to upgrade its in-game non-playable characters, enabling them to adapt to quests, dialogue, and challenges based on player actions.

The staff cuts are expected to help reduce Illuvium Labs' monthly burn rate from an average of $950,000 to $500,000, with plans to further decrease it by the end of March. Some employees have also agreed to take pay reductions or accept the ecosystem's token (ILV) instead of regular USD, providing the firm with 24 months of runway. Warwick does not anticipate the staff reductions affecting game development, as the company works towards getting all of its core games in a good state and scaling back up for new initiatives. The firm plans to relaunch Arena, one