- Dapper Labs, the non-fungible token (NFT) collectibles company behind NBA Top Shot recently announced a third round of layoffs.
- The organization has laid off 51 employees following a 20% staff reduction in February earlier this year.
- This comes as a result of the decline witnessed by the NFT market and trading in 2022.
Dapper Labs Layoffs
Dapper Labs, the non-fungible token (NFT) collectibles company behind NBA Top Shot, recently bid farewell to an additional 51 employees, following a previous staff reduction of 20% in February earlier this year. In an announcement by Roham Gharegozlou on July 13, the company’s CEO revealed that the organization is undergoing its third round of staff layoffs within a year.
Reason for Layoffs
This comes as a result of the decline witnessed by the NFT market and trading in 2022. Reports in April highlighted the prevalence of sellers, resulting in an imbalance in the NFT market. Moreover, numerous renowned blue-chip collections have experienced substantial drops in their floor prices in recent months. Regrettably, the subsequent crypto winter took its toll on Dapper Labs. The company had to implement workforce reductions, laying off 22% of its employees in November 2022, followed by an additional 20% reduction in February of the following year.
Gharegozlou utilized Twitter to share an email sent to team members disclosing that a significant number of 51 employees will depart. “The decision was incredibly difficult because of the amazing people affected, but it is necessary, and the right thing to do is to ensure a lean and efficient Dapper Labs,” reads his note. Gharegozlou emphasized that Dapper Labs and Flow had ample capital resources stating “Despite restructure our financial position remains strong.” Furthermore he expressed “Through this reorganization we have streamlined our operations enabling us to prioritize well-being of our fans and foster organic growth.”