Dapper Labs has recently announced its third round of staff layoffs within a span of less than a year.
On July 13, CEO Roham Gharegozlou revealed that the company had to bid farewell to 51 of its talented employees and referred to them as “brilliant colleagues and friends.”
This latest round of cuts affected both full-time staff members and C1 contractors.
Gharegozlou acknowledged the difficulty of this decision, particularly due to the exceptional individuals impacted by it.
However, he emphasized the necessity of the cuts to ensure the company’s efficiency and streamlined operations. Despite the layoffs, Gharegozlou assured that Dapper Labs and its blockchain platform, Flow, remained in a strong financial position.
He expressed confidence in the restructuring, stating that it would enable the company to serve its fans better and foster healthy growth within its communities.
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The reduction in staff represents approximately 12% of Dapper Labs’ workforce, according to employee data from Growjo.com.
This downsizing marks the third occurrence in less than a year, following a 22% cut in November 2022 and a 20% reduction in February 2023.
Inquiries were made to Dapper Labs by Cointelegraph for additional comments regarding the layoffs, but a response was not received at the time of publication.
Dapper Labs gained recognition for its development of popular NFT collectibles, including CryptoKitties and NBA Top Shot.
This move to downsize the staff comes amidst a broader decline in NFT markets and trading. In April, Cointelegraph reported on the market’s imbalance, with sellers dominating the scene.
Additionally, many prominent NFT collections experienced substantial decreases in floor prices over the past few months.
Clegainz, a commentator specializing in sports and NFTs, stated that the layoffs were not a surprising development, considering the current state of Web3 and the overall macroeconomic environment.
They further noted that Dapper Labs is not alone in facing these challenges, as numerous other Web3 companies are in similar situations at present.
