NFT company Dapper Labs has laid off 51 more employees, just months after cutting 20% of staff in February.
In a note to staff, CEO Roham Gharegozlou announced the third round of layoffs this year, which included full-time and contract workers. He acknowledged the difficult decision but said it was necessary to ensure a lean and efficient company.
Despite the cuts, Gharegozlou reiterated that Dapper Labs and its Flow blockchain remain well-funded. He stated the restructuring will allow them to focus on growing their communities in a sustainable way and doing right by their users.
The latest job cuts come amid a crypto winter that has forced many companies in the space to downsize. Dapper Labs aims to become leaner in order to weather current market conditions.
The latest layoffs represent around 12% of Dapper Labs’ staff, per employee figures from Growjo.com. This is the third round of job cuts in less than a year, after reducing headcount by 22% in November 2022 and 20% in February 2023.
Dapper Labs, known for developing NFT collectibles like CryptoKitties and NBA Top Shot, did not respond to requests for comment.
The move comes as the NFT market slumps, with more sellers than buyers and declining floor prices for major collections.
Industry commentators say the cuts are unsurprising given the poor macroeconomic climate and a general downturn in the crypto/Web3 space. Many blockchain companies are downsizing as a result.
While necessary to stay lean, the job losses highlight the broader challenges facing NFT creators and markets currently. Dapper Labs is the latest firm forced to tighten its belt during this crypto winter.
