Dapper Labs Announces New Round Of Layoffs Amid Restructuring Efforts

Key Points:

• After letting go of more than 20% of its workforce in less than four months, Dapper Labs made the decision to fire another full-time employee.
• According to a message to employees from founder and CEO Roham Gharegozlou, Dapper Labs is firing 20% of its full-time employees as part of a fresh effort to reorganize the company.
• Gharegozlou said that the company has no outstanding debt and is in a healthy cash position.

Less than four months after parting 22% of its staff, Dapper Labs continues to lay off employees in an effort to restructure the company.

The company is laying off its full-time staff, according to a letter to staff sent by founder and CEO Roham Gharegozlou.

In an email to staff on February 22, Gharegozlou announced that he was saying goodbye to 20% of his employees as part of a company reshuffle. The CEO wrote:

“With the right cost structure, we can think long term. Our goal is to grow our communities sustainably, prioritizing the health and authenticity of each product. We have a huge year coming up launching two new major global IPs (unannounced) as well as relaunching NBA Top Shot and NFL ALL DAY as mobile-first platforms with balanced economies and improved gamification.”

Still, CEO Gharegozlou reassured investors and said the company is in a position of abundant cash and has no outstanding debt:

“Dapper Labs remains in a strong cash position with no outstanding debt. We are committed to our flagship products, very excited about several major launches coming up this year, and more confident than ever that Web3 will remake digital life for the better for billions of people, overtime.”

The second big batch of layoffs just occurred. Due to excessively quick growth – the company’s workforce has increased from 100 to 600 people in less than two years – Dapper Labs fired 22% of its employees in November. Gharegozlou said at the time that the layoffs were essential for the future prosperity of Dapper’s company and neighborhoods.

The significant layoffs come as the NFT market recently showed signs of recovering from a prolonged downturn. In November 2022, when the general market crisis broke out, many companies in the industry had to tighten operating costs.

But the wave of layoffs has remained so far and shows no sign of abating. Some major companies announced cuts since the beginning of this year, such as Coinbase, ConsenSys, Huobi, Bybit, Blockchain.com, CoinTracker, Chainalysis, and Magic Eden.

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Harold

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