Illuvium Team Slashes Wages for Second Time Amid Crypto Gaming Downturn

Illuvium's team is taking another pay cut to stay in business. Co-founder Kieran Warwick announced that staff have agreed to reduce their wages, which he claims will extend the studio's operational runway until August 2027. This is not the first time Illuvium has reduced costs; in early 2025, the studio underwent a significant restructuring, cutting its core team from around 100-150 people to just 66 contributors. The monthly burn rate decreased from approximately $900K to about $500K, and salary caps were introduced, capping certain roles at $85K.

Many team members opted for ILV token compensation instead of cash, betting that the project will survive long enough to matter. Warwick estimates that this latest round of wage cuts will push the studio's runway past 12 months, meaning it can operate into the second half of 2027 without needing external funding.

The studio is still capitalizing on $132 million in historical funding, which is substantial for a crypto gaming project. However, even with this war chest, Illuvium needs to cut costs to stay afloat. The central bet is the Overworld MMO, a massively multiplayer online game that represents the studio's flagship product and best shot at generating meaningful revenue.