Dapper Labs, a prominent nonfungible token (NFT) collectibles company, has recently announced its third round of staff layoffs within a year due to the ongoing slump in the NFT market. The company bid farewell to 51 employees, following a reduction of 20% in staff just a few months ago in February.
CEO Roham Gharegozlou stated that the decision to make these cuts was difficult but necessary to ensure a lean and efficient organization. He emphasized that despite the layoffs, Dapper Labs and its platform Flow remain well capitalized. The restructuring aims to create a more streamlined business model that will allow the company to cater to its fan base and foster healthy community growth.
The latest round of layoffs accounts for approximately 12% of Dapper Labs’ total workforce, according to employee data from Growjo.com. This reduction is part of a series of downsizings with a 22% decrease in November 2022 and a 20% cut in February 2023. Cointelegraph reached out to Dapper Labs for further comments but had not received a response at the time of publication.
Dapper Labs is renowned for developing popular collectibles such as CryptoKitties and NBA Top Shot. However, this move comes amidst a broader decline in the NFT market and trading. In recent months, NFT markets have been unbalanced, with sellers dominating and leading to significant drops in floor prices for many high-profile collections.
As the NFT industry undergoes challenges, Dapper Labs remains committed to its core communities and continues to focus on building exceptional products that drive progress. The company’s strategic restructuring aims to position itself for sustained growth and navigate the evolving landscape of the NFT market.