Solana-based game developer Automata will part ways with many of its employees as part of the restructuring.
Automata, which has gone out of business as part of the restructuring, will lay off a significant part of its 235 personnel. In the last case, the company will have 45 personnel.
Automata lays off 190 staff
Solana-based game developer Automata has announced that it will make a significant staff reduction as part of its restructuring efforts. CEO and co-founder Michael Wagner announced on Discord that the team will drop from 235 staff to 45 staff.
Following the restructuring, the Automata team will focus on “delivering SAGE and the newly announced Crew Mobile App.” However, development of a software development kit (SDK) combining Unreal Engine 5 with Solana “will continue at a significantly slower pace.”
While explaining the reasons for the changes, Wagner stated that about 33 percent of the project revenue is received as the in-game token Atlas. However, the Atlas token lost most of its value last year. It was also shared that the team had a significant tax debt and that $ 15 million was lost from the treasury due to the bankruptcy of FTX.
Although the Automata team reclaimed some of the FTX funds in January, the changes were a bitter reality, stating that the capital intensity and business strategy were unsustainable.
