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ATMTA, gaming firm behind Star Atlas, slashes 73% of workforce after FTX losses

ATMTA, gaming firm behind Star Atlas, slashes 73% of workforce after FTX losses
A memo sent to staff from co-founder and CEO Michael Wagner said the cuts were needed to preserve cash.
  • The company will cut about 122 jobs, a memo from the CEO said.
  • ATMTA’s CEO said it will pause its liquidation strategy temporarily.
  • The company lost about $15 million from the collapse of FTX, which was a “significant portion of our liquid cash balance.”

San Francisco gaming firm ATMTA said it will implement a “significant headcount reduction” as it seeks to keep operations afloat.

A memo sent to staff and shared on Discord from co-founder and CEO Michael Wagner said the cuts were needed to “preserve its long-term ability to continue developing Star Atlas.”

ATMTA describes Star Atlas, built on the Solana blockchain, as a “space-themed video game metaverse.”

The remaining “core team” will be about 45 workers. Staff levels were about 167 after “the post-FTX reductions,” and reached a peak of 235 in late 2022.

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The cull represents a cutting of 122 jobs, or about 73% of the workforce.

The company lost about $15 million from its treasury with the collapse of FTX, a “significant portion of our liquid cash balance.”

The company said it will pause its liquidation strategy temporarily.

“These changes are intended to preserve our operational runway for up to another year and beyond, based on very conservative cash flow assumptions,” he said.

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With a “much smaller” team, he added, “we will be more agile and fully capable of delivering on our prioritised products and maintaining all other existing products.”

Wagner continued: “We are prioritising SAGE and the mobile app because they have shown significant growth potential and early traction, will have an immediate economic impact on Star Atlas, and require fewer resources to enable uninterrupted development for the foreseeable future.”

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