Dapper Labs Lets Go Another 20% of its Workforce
- The company behind CryptoKitties, NBA Top Shot, and Flow Blockchain, Dapper Labs, has fired 20% of its workforce once again.
- Last year in November, the company let go of another 20% of its workforce or about 130 people following the collapse of FTX.
- CEO and founder of Dapper Labs, Roham Gharegozlou, said that the company plans to restructure the organization.
- The full-time employees and C1 contractors that have been laid off will get three months severance along with several other benefits.
The global macroeconomic conditions and a weak crypto market have affected the functioning of many crypto firms, along with NFT-focused companies. There has been a strong outflow of capital in blockchain-based assets in 2022, and so far, in 2023, Bitcoin (BTC), the largest crypto coin, has been rejected at $25,000 multiple times. Additionally, Dapper Labs, the company behind CryptoKitties, NBA Top Shot, NFL All Day, UFC Strike, and the Flow blockchain, have also suffered from the decrease in investments in crypto technology.
According to a letter shared by the CEO and founder of Dapper Labs, Roham Gharegozlou, the plan is to restructure the organization of the company “to improve our focus and efficiency, strengthening our position in the market, and better serving our communities.” The executive further added:
“As part of this restructure, we made the difficult decision to part ways with 20% of full time employees. We have already spoken to everyone affected and our team is engaging to support in every way. If you have not already received a notification, you are not impacted.”
The letter confirmed that all the full-time employees and C1 contractors that have been laid off by Dapper Labs will get three months’ severance along with six months of COBRA for the US team members and comparable benefits for Canadian full-time employees.
They will also get an extended stock option exercise window of two years, and the CEO also confirmed that every employee will have a minimum of four months of digital mental health support.
“We are deeply grateful to our departing colleagues and wish them well in future endeavors. The team worked hard to create a package of benefits to help support every individual, including generous compensation, health continuation benefits, extended exercise windows for equity stock options and mental health benefits as well as job search support,” said Gharegozlou.
As recently reported by Bitnation, Dapper Labs let go of another 20% of its workforce in November, which was a sad month for the crypto industry as many firms laid off significant amounts of their workforce. Interestingly, for transparency purposes, the CEO shared the company’s top-line sales (packs + 5% of marketplace + wallet fees) over the past three years, which amounted to $5 million in 2020, $167 million in 2021, and $135 million in 2022.
Also, it is crucial to note that Dapper Labs has been sued for the sale of NBA Top Shots, a popular digital collection, as the US authorities claim that these are unregistered securities. Moreover, Gharegozlou requested, via a motion, that US District Judge Victor Marrero dismiss the class action suit, claiming that the Top Shots are securities, but the judge dismissed the motion.
The Dapper Labs CEO acknowledged the decision made by Marrero in the letter and added:
“We received notice that U.S. District Judge Victor Marrero denied Dapper’s motion to dismiss the Friel class action alleging that NBA Top Shots are securities. There is a lot of misinformation circulating about the nature of this ruling. All the ruling means is that the case goes to discovery with absolutely no substantive decision on whether NBA Top Shots are securities.”