Dapper Labs Implements Third Round of Layoffs

The technology and token collection company Dapper Labs has announced its third round of layoffs in less than a year.

On July 13, the CEO of Dapper Labs, Roham Gharegozlou, announced the departure of “51 brilliant colleagues and friends.”

In a note to employees, he explained that the most recent layoffs affect full-time employees and C1 contractors.

“The decision was tough because of the amazing people affected,” he said, before adding that it was necessary and the right thing to do to “ensure a lean and efficient” company.

Gharegozlou, however, reiterated that Dapper Labs and Flow remained “well capitalized” before adding:

“With this restructure we have made the business more lean, which is going to let us do the right thing for our fans and grow our communities in the most healthy ways possible.”

According to total employee figures from Growjo.com, the layoffs represent approximately 12% of the company’s staff.

It is the company’s third reduction in staff in less than a year, following cuts of 22% in November 2022 and 20% in February 2023.

Dapper Labs is recognized for creating popular collectibles like CryptoKitties and NBA Top Shot.

The move coincides with a general decline in NFT markets and trading. It was reported in April that non-fungible token (NFT) markets were “out of balance,” with sellers dominating.

In addition, the floor prices of several of the largest blue-chip collections have declined dramatically in recent months.

“Clegainz,” a sports and NFT commentator, stated that it was not a “huge surprise” given the current state of Web3 and the macroeconomic climate.

They added that Dapper Labs was not alone, as numerous Web3 companies were in a comparable situation.