CEO EXPLAINS Laying off 73% of Workforce to Save his Company

In this episode, Game7 co-founder, Ronen Kirsh sits down with Star Atlas CEO, Michael Wagner.
Michael opens up about his biggest fears, including the fear of failing at what he describes as his life's work and the responsibility he feels towards his supporters. Discover how the collapse of FTX and other market upheavals led to a significant financial strain on Star Atlas, and how the team navigated turbulent waters.
Michael faced the difficult task of reducing his workforce by 73%. In this episode, he shares the thought process behind this tough decision and how he navigated the challenges that followed.
He reflects on the impact of these crises, including the lessons learned from rapid scaling and operational challenges. He discusses the importance of backup systems, balancing perfectionism with iterative development, and the need for transparent communication with the community.
Ronen and Michael also explore how to handle criticism and community pushback in an industry that is centered on engaged communities. They discuss the pressure that comes with success, the difficulties of strategic communication, and the importance of staying confident in the company’s vision, even when faced with external pressures.
This is an honest conversation that shines a light on the perseverance, strategy, and passion driving innovation in Web3 gaming.
Timestamps:
0:50 - Michael’s Biggest Fears as an Entrepreneur
3:44 - The Biggest Misconception People Have About Founders
5:31 - What Would Michael Do With A Billion Dollars?
7:08 - Handling Challenges: FTX Loss and Community Pushback
14:33 - What Would Michael Have Done Differently Looking Back on How He Handled FTX Fallout
20:13 - Lessons Michael Learned About Treasury Management
25:07 - How Michael Handled Laying Off 73% of His Workforce
29:45 - Best Practices For Reducing Workforce
32:09 - Rebuilding Team Morale and Trust After Layoffs
35:55 - How Michael Dealt With Criticism
43:00 - What Michael Has Learned About Communicating with Star Atlas’ Community
46:13 - What Keeps Michael Motivated to Build in Web3

[@ziblibito]

Nice Tokyo t-shirt and great episode as always!

[@TeavHeng]

we believe in Star Atlas, Power to the people. 🚀🚀🚀

[@haveaniceday7530]

Nice🎉

[@tabletnoiki166]

:)