The blockchain gaming company has slashed 40% of its workforce in the past two weeks, with CEO Kieran Warwick stating that the move aims to streamline operations and speed up development.
This latest round of layoffs has reduced Illuvium’s headcount from 110 to 65, with the cuts primarily affecting marketing, operations, security, and quality assurance (QA) teams. Warwick insists that no developers were let go, and the firm will now rely on its community for QA testing.
Despite the difficult decision, Warwick believes this restructuring will help the company return to its most productive state.
“We’re Back to Our Best” – Warwick on Leaner Operations
Warwick acknowledged that Illuvium had grown too fast, becoming “too corporate” in the process.
“When we were at our best was when we were super lean,” Warwick said. “We only had 50 to 60 people, and everyone was an expert. We’re now back to that super-organism that can really deliver stuff quickly.”
He also pointed to the company’s first year as its most productive, where a small, dedicated team worked long hours to ship more content than at any other time in Illuvium’s history.
This shift toward a leaner, more agile structure comes as Illuvium pushes forward with three blockchain games; Overworld, Illuvium Arena, and Illuvium Zero, all built on the Ethereum blockchain.
Cost-Cutting to Extend Survival Mode
Beyond boosting efficiency, Illuvium’s downsizing is a strategic financial move.
The firm’s monthly burn rate will drop from $950,000 to $500,000, with further reductions planned by the end of March.
To help extend the company’s operational runway to 24 months, some employees have opted for pay reductions, while others have agreed to be compensated in Illuvium’s native token, ILV, rather than USD.
Warwick maintains that these changes won’t negatively impact development, as the company’s immediate focus is on refining its core games.
What’s Next for Illuvium?
The company is actively rolling out patches for its games, but its official roadmap hasn’t been updated in over a year.
That said, Warwick revealed that Illuvium Overworld is evolving into a massively multiplayer online game (MMO), a major shift that could reshape the company’s Web3 gaming strategy.
Additionally, Illuvium has partnered with AI agent protocol Virtuals to enhance its in-game non-playable characters (NPCs). This technology will enable NPCs to adapt to player choices, quests, and challenges dynamically, bringing a new level of interactivity to the game.
Warwick remains confident in Illuvium’s direction, stating that the team is focused on relaunching Illuvium Arena and rolling out new features across its ecosystem over the next four to five months.
“Then we’re going to push the button to go pretty hard and do a whole bunch of integrations with some eSports tournaments,” he added.
The Bigger Picture: Web3 Gaming in a Shifting Market
Illuvium’s restructuring reflects a broader trend in the Web3 gaming industry, where companies are tightening budgets to weather the bear market.
While funding for blockchain gaming projects remains strong, many companies are adapting to investor demands for leaner operations and clearer monetization models.
For Illuvium, the challenge is twofold:
- Delivering high-quality, immersive blockchain games that can compete with traditional AAA titles.
- Ensuring long-term sustainability by optimizing spending while maintaining a competitive roadmap.
If Warwick’s “super lean” approach proves successful, it could set a new model for Web3 gaming firms looking to balance cost efficiency with ambitious development goals.
Final Thoughts: A Leaner, Faster Illuvium?
The next few months will be crucial for Illuvium’s future. With a smaller, focused team, the company is betting on faster development cycles, stronger community involvement, and lower overhead costs. If Illuvium can execute on its game development goals while sustaining player engagement, this strategic reset could position it as a leader in blockchain gaming’s next growth phase.
However, if delays continue and the gaming roadmap remains unclear, questions about long-term viability could resurface.
