Metafy Cuts 23% of Staff Despite Doubling Revenue in Gaming Coaching Marketplace
Layoffs Hit Metafy, a Video Game Coaching Marketplace
In a move aimed at adapting to the changing market landscape, Metafy, a video game coaching marketplace, has laid off 23% of its staff. The affected employees were primarily from product, design, and engineering teams. This decision was made by founder Joshua Fabian in an effort to ensure the company’s survival.
A Tough Decision, but Necessary
The layoffs are a direct result of Metafy’s struggle to adapt to the "new normal" of a more disciplined environment. As Fabian explained in an email to TechCrunch, the company waited too long to make significant changes, leading to unnecessary pain and hardship for the affected employees.
A Shift Toward Leaner Operations
Metafy has made significant strides in reducing operational costs by 70%, from $306,000 per month to $100,000. The layoffs have also helped reduce personnel costs by 19%, from $746,000 per month to $607,000.
Impact on the Business
The company’s financials suggest that Metafy has a little over two years of runway if it stops making revenue. This estimate is based on Fabian’s calculation that the company has sufficient funds until February 2024.
A Message from the Founder
Fabian took to social media to address the layoffs, stating, "I’m not crazy about the ivory tower bullshit. The cuts impacted roles that once made sense to the business but are now hard to justify." He emphasized that the decision was necessary for the company’s survival and growth.
Supporting Affected Employees
Metafy has offered three months of severance pay and extended healthcare benefits to the affected employees, regardless of their tenure. Additionally, the company provided a subscription to LinkedIn Pro and lifted equity cliffs for employees who were at Metafy for less than a year.
A New Normal in the Industry
The decision by Metafy highlights the challenges faced by startups adjusting to the changing market landscape. As Fabian noted, "We waited too long to make significant changes, leading to unnecessary pain and hardship for our team members."
Key Takeaways
- Metafy has laid off 23% of its staff in an effort to adapt to the changing market landscape.
- The affected employees were primarily from product, design, and engineering teams.
- The company reduced operational costs by 70% and personnel costs by 19%.
- Metafy has a little over two years of runway if it stops making revenue.
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