CEO states cuts are necessary due to the macroeconomic Environment
The Founder and CEO of Dapper Labs, Roham Gharegozlou announced a reduction in team size by 22 percent this past Wednesday Nov 2. In speaking of the reductions the CEO had the following to say:
“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.”
The CEO went on to speak on how the company just grew too fast from the 100 to over 600 employees in less than 2 years time. This was stated as causing the company to be “less aligned, nimble, and community-driven” as it needed to be. The CEO of Dapper Labs stated that he shoulders the responsibility for that.
Vice President Dave Feldman Posted his feelings about the situation via a Tweet:
Seen as non-coincidental the news comes after reports that NBA Top Shot , the “crown jewel” of Dapper Labs hit a nearly two–year low for monthly sales as NFT and digital assets sales have taken hits month after month during this bear market.
Dapper Labs approached the layoffs by reviewing each line of business determining the amount of influence each line had towards mainstream web3 adoption and its synergy with the Dapper Labs and its goals. Due to this the product strategy was streamlined and focused around a more sustainable cost.
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.”
Gharegozlou
Dapper Labs saw much success during the crypto boom a few years ago as they launched CryptoKitties in 2017 and deployed the Flow blockchain. The company has recently signed several big deals including one with the NFL for NFL ALL DAY,another NFT collection and a deal with Ticketmaster for selling tickets to shows.
Dapper Labs did not however just cut ties with the employees leaving them scrambling for survival, instead Gharegozlou wrote “ we have worked to create a package of benefits so you can receive compensation , health and other benefits from Dapper Labs while you seek your next opportunity” These benefits include 3 months severance, public talent directory, resume and career coaching, and alumni support. Feldman wrote:
“If you ever come across someone with [Dapper Labs] on their resume, know that they will throw everything into their work, will care deeply about their team and were one of the first to recognize and shape where the world is undeniably heading,”
The total number of employees laid off was not given but it was rumored to be over 22%
Did you like this article? Solanews has many more articles for you to check out! Feel free to explore more of our library!