Illuvium Restructures Amid ‘Rebuild,’ Cutting Costs and Staff

Flash

February 21, 2025 11:42 AM

In Brief:
Illuvium reduces staff and caps wages as part of a cost-cutting effort.
Restructuring extends the game studio’s runway to 24 months for further development.

Ethereum-based gaming studio Illuvium has announced a company-wide restructuring, implementing layoffs, wage caps, and token-based salaries in an effort to cut costs and sustain development.

The studio, known for its interconnected Overworld, Arena, and Zero games, initially struggled to meet community expectations after years of development. Co-founder Kieran Warwick acknowledged concerns in December and stated that Illuvium needed significant changes.

As part of the restructuring, Illuvium has reduced its monthly burn rate from $900,000 to $500,000, giving the studio a 24-month runway to focus on game improvements. The team, once between 100 to 150 contributors, has now shrunk to 66.

Warwick confirmed that Illuvium is not seeking external funding at this time and will prioritize refining its existing games, including streamlining Overworld into an MMO and reducing microtransactions.

Despite setbacks, Warwick remains optimistic, promising "enormous updates" next month, including auto-drone runs, multiplayer servers, and reactivated leaderboards to keep players engaged.

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