Dapper Labs to cut a further 20% of its staff

Canadian NFT company Dapper Labs will lay off a further 20% of its staff after cutting 22% in November 2022. The Block reports.

Media reports say that in the autumn approximately 134 employees of the firm left the company.

The CEO Roham Garegozlou named the layoffs a “corporate restructuring.” He said the company is in a “stable financial position and has no outstanding debt.”

“So, after almost two years of work, numerous restructurings and layoffs, my time has come. Today another 20% cut,” wrote blockchain-community manager Flow Drew Garrison.

Well, after almost two years with Dapper Labs and surviving multiple restructures and layoffs, my time has come. Another 20% drop today. A great learning experience, but I can’t wait to kill it wherever I go next.

— Drew Garrison (@DrewGarrisonSBN) February 22, 2023

Content manager Daniel Martin also said that he was affected by the new wave of layoffs.

Unfortunately, I was among those affected by Wednesday’s layoffs at Dapper Labs.

I’m immensely grateful to have had the opportunity to build something as unique and innovative as NFL ALL DAY, alongside some incredible colleagues.

— Daniel Martin (@dmartindigital) February 23, 2023

Over the last 30 days, the Flow blockchain’s NFT trading volume declined by almost 8%, according to CryptoSlam. The undisputed leader of the sector — Ethereum — has seen its figure rise by more than 100%.

Trading volume on the ImmutableX NFT market surged by 78.5% over the period. In late February, the startup behind the network, Immutable, announced a new wave of staff optimization.

On February 22, a federal judge did not support Dapper Labs’ bid to dismiss the class action against the company. Investors accused the firm of offering unregistered securities in the form of NBA Top Shot NFTs.

The company noted that the court’s decision is not a final ruling on the case. Industry lawyers such as Jake Chervinsky and Bryan Christenson confirmed this view. The latter noted that the case could drag on for years.

Absolutely. The order in the Dapper Labs case is NOT an affirmative determination that NBA Top Shot moments are securities. At the motion to dismiss stage, which is what this decision is about, a court must “accept as true all factual allegations and draw from them all reasonable https://t.co/iHH2H0ocfr

— Bryan Christenson, Esq. (@web3bryan) February 24, 2023

In May 2022, Dapper Labs raised $750 million for the Flow ecosystem development fund.