Star Atlas development studio ATMTA announces restructuring and layoffs.
2023-07-25 12:08
Odaily News: Star Atlas development studio Automata (ATMTA) revealed that it will undergo a major restructuring of its business to cope with the challenging market environment.
The CEO of the company, Michael Wagner, stated, "ATMTA is undergoing significant layoffs to maintain its long-term ability to develop Star Atlas. We will prioritize our SAGE and mobile products, which may show better results in a shorter timeframe, while extending the development timeline for our other products."
ATMTA suffered a loss of approximately $15 million in the FTX scandal, which represents a significant portion of its cash balance. As a result, the company has decided to reduce the team size and refocus efforts on the SAGE game and mobile applications. The remaining core team will consist of 45 people, down from the peak of 235 people at the end of 2022 before the FTX incident.
After the restructuring, ATMTA will operate with a leaner team to ensure necessary agility and focus in delivering its key products and maintaining its existing ones. This measure also aims to enhance the company's attractiveness to potential investors for expanding product development when conditions permit (Cryptobriefing).
According to previous reports in November 2022, Michael Wagner, the founder of the Solana ecosystem game metaverse Star Atlas, stated that Star Atlas development studio ATMTA had a significant cash exposure with FTX. After FTX filed for bankruptcy restructuring, the project's cash runway would be cut in half. Despite the market turbulence, the company still possesses a "strong balance sheet" and is preparing for structural reforms within ATMTA to ensure the continued viability of the Star Atlas vision.
Wagner stated, "I believe that the position of liquid funds should be entrusted to a reliable and trustworthy institution. I placed my confidence and trust in someone whom I thought was a pillar of the industry. Clearly, that trust was betrayed. Timing was poor, and the failure to take sufficient contingency measures to respond swiftly to such circumstances has resulted in the position being affected. That is my responsibility, and for that, I apologize."
The CEO of the company, Michael Wagner, stated, "ATMTA is undergoing significant layoffs to maintain its long-term ability to develop Star Atlas. We will prioritize our SAGE and mobile products, which may show better results in a shorter timeframe, while extending the development timeline for our other products."
ATMTA suffered a loss of approximately $15 million in the FTX scandal, which represents a significant portion of its cash balance. As a result, the company has decided to reduce the team size and refocus efforts on the SAGE game and mobile applications. The remaining core team will consist of 45 people, down from the peak of 235 people at the end of 2022 before the FTX incident.
After the restructuring, ATMTA will operate with a leaner team to ensure necessary agility and focus in delivering its key products and maintaining its existing ones. This measure also aims to enhance the company's attractiveness to potential investors for expanding product development when conditions permit (Cryptobriefing).
According to previous reports in November 2022, Michael Wagner, the founder of the Solana ecosystem game metaverse Star Atlas, stated that Star Atlas development studio ATMTA had a significant cash exposure with FTX. After FTX filed for bankruptcy restructuring, the project's cash runway would be cut in half. Despite the market turbulence, the company still possesses a "strong balance sheet" and is preparing for structural reforms within ATMTA to ensure the continued viability of the Star Atlas vision.
Wagner stated, "I believe that the position of liquid funds should be entrusted to a reliable and trustworthy institution. I placed my confidence and trust in someone whom I thought was a pillar of the industry. Clearly, that trust was betrayed. Timing was poor, and the failure to take sufficient contingency measures to respond swiftly to such circumstances has resulted in the position being affected. That is my responsibility, and for that, I apologize."
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