Dapper Labs, the company behind the collection of NFT CryptoKitties and the Flow blockchain, is forced to lay off 22% of its staff, or at least more than 130 people. According to its founder Roham Gharegozlou, this decision is attributable to the latent macroeconomic instability.
Dapper Labs massive layoffs
Dappers Labsthe company behind the collection of CryptoKitties non-fungible tokens (NFTs) and the Flow blockchain, is forced to dismiss 22% of its staff due to the current macroeconomic fog.
The press release, written by Roham Gharegozlou, CEO and Founder of Dapper Labs, indicates that the people affected by this wave of layoffs have already been informed. In order to choose which of its members would be concerned, the company chose to focus on what was its strength and what ” served the global priority of widespread adoption of Web3 “.
On this subject, we can read in the letter of Roham Gharegozlou:
“We then transposed the product strategy and cost structure to individual teams and team members, making tough decisions based on the skills and capabilities we will need for our future business. […] At Dapper Labs, we focusns on what will move the slider and bring the whole sector to its next inflection point – and we back out of anything that doesn’t fit that orientation. »
Moreover, according to the founder of Dapper Labs, the company overestimated its growth, growing from 100 to more than 600 employees in 2 years. For this, he assures take responsibility ” consequences.
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A macroeconomics that embraces NFTs
Dapper Labs, which operates in the NFT sector, in particular with its flagship CryptoKitties collection, the NBA Top Shot NFTs and UFC Strike, thus undergoes an additional difficulty since the NFT sector is at its lowest. Indeed, the company has significant financial holdings in this environment.
Weekly volume of NFTs traded by category
His NBA Top Shot collection, for example, which saw a notable gain in popularity at the start of 2021, has seen its popularity gradually decrease, to the point of reaching its lowest sales volume in the last month. This volume is now close to a few thousand dollars a day, where the collection was able to register a peak sales of over $45 million in February 2021.
Although the employees affected by these layoffs are forced to find employment elsewhere, Dapper Labs assures that they will benefit from support until they succeed. This will include three months of allowances, support to find a job, and, among other things, the establishment of a website to link injured employees with professionals.
Dapper Labs, however, did not reveal the precise number of employees affected by this dismissal.
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SSource: Dapper Labs Press Release, The Block
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