By
Chimamanda U. Martha
April 22nd, 2024
The tough macroeconomic condition has put firms all over the world in a tight spot as the race to cut down costs by all means necessary.
Web3 studio Dapper Labs appears to be the latest in a long list of firms that have slashed their staff. The news was shared by Roham Gharegozlou, the Founder and CEO of Dapper Labs while addressing the company’s employees in a public letter on Wednesday. According to the announcement, the firm has decided to terminate the contract it has with about 22% of its team.
Dapper Labs’ Decision to Slash Its Staff
Speaking about the decision, Gharegozlou admits that though unsavory, it was the best decision to make. Especially if the long-term interest of Dapper Labs is to be protected.
Without a doubt, the tough macroeconomic condition has put firms all over the world in a difficult spot. These firms are left with no option but to cut down on costs, by all means necessary. And that includes letting go of some of their gifted hands.
He further added that Web3.0 remains the way to go, but just maybe now is not the best time. Part of the statement reads:
“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.”
Dapper Labs Grew Too Fast – Gharegozlou
Still, in a bid to justify the decision to lay off its staff, the CEO also said that the company grew too fast. He mentioned how the team added more than 500 employees in less than two years – a move that might have hindered Dapper Labs from being as aligned and focused as it needed to be.
Although Gharegozlou has taken responsibility for the actions, he insists that the company will now be taking a different approach. According to him, their current efforts are in line with a more sustainable cost structure. And going forward, only those positions that will be needed for the journey ahead, are left.
Meanwhile, the news of the workforce reduction is coming on the heels of an earlier report about Dapper Labs’ most popular NFT marketplace NBA Top Shot. A few hours ago, the marketplace hit a monthly sales low it hasn’t seen in close to two years. However, the low sales are only reflective of what has now become commonplace in the digital collectibles space.