Dapper Labs cuts 22% of its staff

The Canadian NFT company Dapper Labs laid off about 22% of its staff. The cuts affected roughly 134 employees, BetaKit reported.

Senior vice president of the firm, David Feldman, confirmed the layoffs:

“Today is a difficult day for Dapper Labs as we said goodbye to some incredibly talented, thoughtful and selfless teammates.”

Today is a difficult day at @dapperlabs as we said goodbye to some incredibly talented, thoughtful and selfless teammates. (1/2)

— dave feldman (@dbfeld) November 2, 2022

The company rose to prominence as the creator of the first popular blockchain game CryptoKitties. Dapper Labs also launched Layer-1 blockchain Flow, on which its NFT projects run, including NBA Top Shot.

Against the backdrop of the bear market in cryptocurrencies, the NFT space has seen a protracted downturn. Trading volume on the leading marketplace OpenSea has declined month after month and, in September, reached $348 million. This aligns with levels seen in the summer of 2021, according to ForkLog report.

Dapper Labs CEO Roham Garegozlou, in a letter to employees about the layoff, noted:

“We at Dapper Labs are betting on what moves progress and leads the industry to a tipping point, and removing anything that does not align with that goal. Despite our efforts to tenfold the market, we must become a targeted, well-ordered organisation that will allow us to profit, take control of our own destiny and move sustainably toward the goal, regardless of economic conditions.”

According to him, the cuts are necessary for “the long-term health of the business.”

Garegozlou also said the company would pursue changes in its strategy aimed at a “more sustainable cost structure.” He did not disclose details.

In September 2021, Dapper Labs closed a funding round of $250 million with participation from Google Ventures and Andreessen Horowitz. At that time, the company’s valuation reached $7.6 billion.

In March of the same year, the firm raised $305 million.

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