Despite the layoffs, Dapper Labs CEO claims the company is "well capitalized."
As Dapper Labs, the famed NFT technology company, grapples with the ongoing NFT market slump, it has been compelled to carry out its third workforce reduction within less than a year.
Roham Gharegozlou, Dapper Labs' CEO, broke the news on July 13th, expressing his sorrow over parting with "51 brilliant colleagues and friends."
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In his address to the staff, Gharegozlou disclosed that this round of layoffs affected both full-time employees and C1 contractors.
The CEO admitted the difficulty of the decision due to the incredible talent and commitment of the impacted individuals but stressed it was an essential step to maintain a "lean and efficient" organization.
Despite the unfortunate turn of events, Gharegozlou reassured his team that Dapper Labs and Flow were still in a robust financial position. He expressed hope, stating:
With this restructure we have made the business more lean, which is going to let us do the right thing for our fans and grow our communities in the most healthy ways possible.
According to data from Growjo.com, the layoffs represent roughly a 12% reduction in Dapper Labs' workforce. Remarkably, this is the third instance of staffing cuts in less than a year, following a 22% reduction in November 2022 and a 20% cut in February 2023.
Dapper Labs is celebrated for developing sought-after digital collectibles like CryptoKitties and NBA Top Shot.
Yet, these layoffs are happening against the backdrop of a more extensive NFT market downturn and fluctuating trading conditions.
Moreover, a significant drop in floor prices has been observed for many notable blue-chip collections in recent months. "Clegainz," a sports and NFT commentator, voiced their lack of surprise over Dapper Labs' situation, citing the current state of Web3 and the broader macroeconomic environment.
Dapper Labs' recent layoffs highlight the harsh reality of the fluctuating NFT market and offer a stark reminder of the volatility inherent to this new digital frontier.
