Immutable Embraces AI Amid Cost-Cutting Drive

Immutable is turning to AI to cut a third of its workforce, streamlining operations and reducing expenses. However, this shift raises questions about long-term job stability and workforce sustainability.

The Sydney-based blockchain gaming company, valued at $3.5 billion in 2022, has reduced its staff from 224 to around 150 over the past nine months. Founded in 2018, Immutable made its name through its ImmutableX platform, which enables users to trade assets in blockchain-based games. The company also develops its own titles, including Gods Unchained and Guild of Guardians.

To offset rising costs, Immutable has deployed artificial intelligence across its engineering, product, marketing and commercial divisions. Tasks that once cost over $1 million yearly, such as content creation and in-game art design, are now handled by AI tools at significantly lower costs. This strategy aligns with similar moves by other Australian tech giants, including a $49 billion design software firm also embracing AI-led efficiencies.

The broader push toward automation seems to follow pressure following Immutable’s rapid hiring spree after a $280 million capital raising, led by major investors like Temasek. The firm is now focused on financial sustainability, aiming to reach cash-flow break-even by the end of 2025. While it hasn’t shared full financial data consistently, Immutable claims to have boosted revenue by 55% to $67 million for FY24, with four years of capital runway and plans to fill 20 new roles.

The company’s increasing reliance on AI signals a broader shift in the tech industry, where efficiency and automation are becoming as critical as innovation. While the firm appears positioned for growth, concerns over job automation and transparency remain part of the ongoing conversation.

Source: Australian Financial Review, CCN