The NBA Top Shot creator Dapper Labs announced the layoff of 22% of its workforce citing the current macroeconomic environment.
Accordion to the letter by Dapper Labs Founder and CEO Roham Gharegozlou, all notification emails have already been sent to the departing team members, and those who have not been notified yet are not impacted.
Gharegozlou stated that the company grew from 100 to over 600 employees in less than two years, launching operational challenges which prevented it from being as “aligned, nimble, and community-driven” as it needed to be.
He added that he takes responsibility for that in addition to the “difficult decision” of laying off its staff as the business gears for restructuring.
Gharegozlou noted “These reductions are the last thing we want to do, but they are necessary for the long-term health of our business and communities. We know web3 and crypto is the future across a multitude of industries – with 1000x potential from here in terms of mainstream adoption and impact – but today’s macroeconomic environment means we aren’t in full control of the timing.”
He said the company has streamlined and focused its product strategy around a more sustainable cost structure that involves “making difficult decisions based on the skills and capabilities.”
NBA Top Shot, however, kept losing pace as its sales momentum deteriorated. In terms of monthly sales, NBA Top Shot really fell to a low and the platform’s sales plunged this year after surging in January.
The laid-off staff members will receive compensation, health, and other benefits from Dapper Labs like three months severance for full-time employees and a public website to help support them in finding new roles.
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