Dapper Labs, the company behind NBA Top Shot and CryptoKitties, has announced their third round of layoffs this year. In total, 51 employees were let go, including full-time staff and contractors.
Dapper Labs CEO Roham Gharegozlou acknowledged the difficult decisions involved and the exceptional individuals impacted. However, he stressed that the layoffs were necessary to increase the company’s efficiency and streamline operations.
Despite the cuts, Gharegozlou said Dapper Labs and their Flow blockchain remain in a strong financial position. He believes the restructuring will enable the company to better serve their communities and foster healthy growth.
The 51 layoffs represent around 12% of Dapper Labs’ total workforce. They follow 22% layoffs in November 2022 and 20% cuts in February 2023.
Dapper Labs gained prominence for popular NFT collections like CryptoKitties and NBA Top Shot. However, the cuts come amid a broader downturn in NFT markets and trading activity.
Commentators note that the layoffs are not surprising given the current challenges facing the Web3 sector and deteriorating macroeconomic conditions. Many other Web3 companies are reportedly facing similar circumstances.
In summary, the layoffs show that even successful Web3 companies like Dapper Labs are being impacted by the downturn in NFT markets and the volatile crypto economy. The cuts aim to make Dapper Labs more efficient and strengthen their financial position.
However, for the affected employees, the layoffs represent a difficult time. And the cuts also raise questions about Dapper Labs’ ability to navigate the current market challenges. Only time will tell if the restructuring helps Dapper Labs thrive in this new environment for NFTs and crypto.