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Dapper Labs, a technology powerhouse known for its nonfungible token (NFT) creations, has recently undergone its third round of layoffs in just nine months, signaling the challenges faced by the NFT market. In a recent announcement, CEO Roham Gharegozlou confirmed that 51 employees, including both full-time staff and C1 contractors, bid farewell to the company. Gharegozlou described them as "brilliant colleagues and friends."
The decision to downsize the workforce was difficult but necessary, according to Gharegozlou. The goal is to transform Dapper Labs into a leaner and more efficient entity. Despite the significant cuts, Gharegozlou assured that Dapper Labs and its blockchain platform, Flow, remain financially robust.
The layoffs are part of an effort to recalibrate the company's business structure while sustaining its communities and fanbase. According to data from Growjo.com, the reduction accounts for approximately 13% of the company's total staff. This is not the first time Dapper Labs has faced workforce downsizing, as it previously reduced its workforce by 22% in November 2022 and 20% in February 2023.
Dapper Labs, known for its popular NFT collectibles like CryptoKitties and NBA Top Shot, has felt the impact of the NFT market's downturn. The market, currently dominated by sellers, has experienced an "imbalance" since April, leading to a significant drop in the floor prices of many high-profile NFT collections.
Commentators have noted that the layoffs at Dapper Labs are not surprising given the current conditions in the Web3 space and the macroeconomic environment. Several companies within the Web3 sector are grappling with similar challenges.
This serves as a reminder that while the NFT market can offer lucrative opportunities, it can also experience downturns, leaving even established industry players like Dapper Labs navigating through challenging times.
