Dapper Labs Layoff Its Staff by 22% due to Macroeconomic Environment.
Late Wednesday, Dapper Labs’ Founder and CEO Roham Gharegozlou announced that the well-known Web3 studio had reduced its team size by 22%.
The Reason Behind The Layoff
A letter written by Gharegozlou to his employees was posted, saying “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… but today’s macroeconomic environment means we aren’t in full control of the timing,” it added.
According to the CEO, the company grew too quickly – from 100 to 600 employees in less than two years – which prevented Dapper Labs “from being as aligned, nimble and community-driven as we need to be.”
“I take responsibility for that,” said the CEO.
On the other hand, Dave Feldman, Dapper Labs senior vice president of marketing posted on Twitter, “Today is a difficult day at @dapperlabs as we said goodbye to some incredibly talented, thoughtful and selfless teammates.”
Today is a difficult day at @dapperlabs as we said goodbye to some incredibly talented, thoughtful and selfless teammates. (1/2)
— dave feldman (@dbfeld) November 2, 2022
The News Comes Following a Wider Downturn in The Digital Collectible Space
It comes just hours after Dapper Labs’ most popular NFT marketplace, NBA Top Shot, reported a nearly two-year low in monthly sales amid a wider downturn in digital collectibles.
Gharegozlou explained the company’s approach to the layoffs in his team letter, reviewing each line of business to determine whether it advanced Web3 adoption globally and if it fit within the company’s strengths and weaknesses.
“Based on this, we streamlined and focused our product strategy around a more sustainable cost structure. We then mapped the product strategy and cost structure to individual teams and team members, making difficult decisions based on the skills and capabilities we will need for our business ahead,” he wrote.